Cambium Annual Report 2009

Cambium Global Timberland Limited
Annual report and financial statements for the year ended 30 April 2009
About us
Cambium Global Timberland Limited is now fully invested in ten forestry properties that are diversified by geography, species, age class and markets. Cambium continues to develop the properties in Brazil and Australia and manage the portfolio on an environmentally and socially sustainable basis. The portfolio is designed to meet the return expectations of shareholders and pay a sustainable dividend that grows over time.
Highlights
1 The Company is now fully invested in ten properties located in North America, South America, Asia/Pacific and Australia/New Zealand 2 The portfolio is diversified by geography, species, age class and markets 3 Three pence per share proposed dividend 4 Adding value through biological growth and operational excellence
IFC 01 02 04 06 08 09 13
About us Highlights Our investments Chairmans statement Investment managers report Board of directors Directors report Independent auditors report to the members 14 Consolidated income statement 15 Consolidated balance sheet
16 Consolidated statement of changes in equity 17 Consolidated cash flow statement 18 Company income statement 19 Company balance sheet 20 Company statement of changes in equity 21 Company cash flow statement 22 Notes to the financial statements 50 Notice of annual general meeting 52 Key parties
01
Cambium Global Timberland Limited Annual report and financial statements 2009
Our investments
Cambium Global Timberland Limited has achieved geographic diversification through strategic acquisitions.
Geography as a % of NAV/
1
North America
Two properties in the southern United States, totalling 51,800 acres which accounts for 53% of net asset value (NAV). These forests are comprised primarily of intensively managed pine plantations characterised as having a balanced age class distribution and will produce pulpwood and logs on a 25-year cycle.
Australia/New Zealand
4 3 2 1 North America 53% 2 South America 12% 3 Australia/New Zealand 5% 4 Asia/Pacific 10% 5 Reserve 20%
South America
Four properties located in Brazil totalling 55,000 acres and 12% of NAV. These are greenfield sites of which about 50% of the land will be established with fast-growing, high-yield eucalyptus on a seven-year cycle. The remaining 50% of the land is to be left in a natural state. The primary end-use market for the trees will be for the production of charcoal to be used in the manufacturing of pig iron.
One property in Australia totalling 21,160 acres and 5% of NAV. In the short to medium-term will provide income from environmental services such as a salinity credit, administered by the local catchment authority, and carbon sales. Long-term income will be generated from the sale of eucalyptus logs grown on a 20-year cycle. The property in New Zealand is 3,200 acres of land that contains pine plantations that are grown on a 27-year cycle. The timber from this land will be exported to log markets in Asia from a port that is situated within 50 kilometres of the property. This property is not included in the NAV chart since it was acquired post year end.
Reserve
Asia/Pacific
The remainder of the portfolio is reserved to fund the establishment of the greenfield properties in Brazil and Australia. See the pie chart opposite for allocation by geography.
Two long-term lease properties located on the big island of Hawaii totalling 8,200 acres and 10% of NAV. These plantations are fully stocked with eucalyptus species ranging in ages from three to ten years. Hawaii provides exceptional climate and soils that in combination produce outstanding growth rates. When mature, logs will be exported to Asia for veneer and furniture products.
02
Corrigan, Texas, USA/ Acreage 21,853 Species loblolly pine Development stage balanced age class for sustainable yield Markets sawtimber and pulp
Georgia/Florida, South Atlantic States, USA/ Acreage 29,900 Species diverse pines Development stage balanced age class for sustainable yield Markets sawtimber and pulp
Tarrangower, New South Wales, Australia/ Acreage 21,163 Species eucalyptus and non-commercial Development stage now being planted Markets sawtimber, carbon credits and biodiversity conservation
Renwick, New Zealand/ Acreage 3,200 Species radiata pine Development stage mid-rotation Markets log exports
Pahala, Hawaii, USA/ Acreage 3,700 Species eucalyptus Development stage mid-rotation Markets log exports
Pinnacle, Hawaii, USA/ Acreage 4,500 Species eucalyptus Development stage mid-rotation Markets log exports
Minas Gerais, Brazil/ Acreage 29,300 Species eucalyptus Development stage bare-land property Markets production of charcoal to the pig iron industry
Tocantins, Brazil (3R)/ Acreage 25,700 Species eucalyptus Development stage bare-land property Markets production of charcoal to the pig iron industry and fuel wood
03
Chairmans statement
...we are pleased that we achieved full investment with ten properties in the portfolio...
Chairmans statement summary/

1 Diversified by geography, species, age class and markets 2 Directors are seeking to renew the authority to buy back shares 3 Three pence per share proposed dividend
Introduction I am pleased to present our audited results for Cambium Global Timberland Limited (the Company or Cambium) and entities under control (the Group) for the year ended 30 April 2009. Although a difficult year with a number of closed-ended funds, including Cambium trading at a discount to net asset value (NAV), we are pleased that we achieved full investment with ten properties in the portfolio (including the New Zealand investment post year end). In addition, market conditions appear to be stabilising in a number of key areas as evidenced by a decrease in the rate of decline in housing prices, stabilisation in energy prices and positive returns in the calendar year for the equity markets. These improving economic indicators combined with the characteristics of the assets class should improve shareholder returns.
As mentioned in the interim report, shareholders should note that the accounting treatment of the foreign exchange hedging activities, which are undertaken to reduce foreign exchange risk, has resulted in a substantial deficit appearing in the consolidated income statement. This is substantially balanced by the currency translation reserve numbers in the consolidated statement of changes in equity. The Board views the NAV progression as being a more accurate method of assessing the performance of the Group. Total return for the Company was negative 1.2% on the year after adding back the 3 pence dividend that was paid in August 2008. NAV gains experienced through land appreciation during the first half of the year and weakening land markets primarily in the United States led to NAV declines during the second half of the year.
04
Timber markets in the United States remain soft and we could see further NAV deterioration though the timberland asset class has continued to exhibit lower levels of volatility. Like many other closed-end listed investment companies the stock has traded at a significant discount to NAV throughout most of the period. The Board and its advisers take the matter seriously and consideration continues to be given to the use of buy-back powers while paying attention to the investment plans for the portfolio and the dividend objectives of the Company as set out in the Admission document. Strategy and implementation The Group is now fully invested in a portfolio of ten assets that are diversified by geography, species, age and markets. The current exposure to North America is higher than originally anticipated, though the overall percentage invested in developed and emerging markets is as was originally estimated.
Investment policy On 1 June 2009, the Rules for AIM Companies were amended and in particular Investment Companies are now required to adopt an investment policy that sets out certain listed investment parameters by which the Company will manage its business. The Companys investment policy, which is set out in the notice of the Annual General Meeting (AGM), reflects, although reworded, the investment objective and strategy as set out in the Admission document of the Company. Share buy backs Directors are seeking to renew the authority to buy back up to 14.99% of the issued ordinary shares as at 29 July 2009, subject to the restrictions referred to in the notice of the AGM. As required by the Admission document, all shares bought back by the Company will be cancelled.
Dividend The Board is proposing an annual dividend of 3 pence per share. The target dividend, after the portfolio matures, will be at the annual rate of 5 pence per share. Outlook The Board and the Investment Manager are optimistic that timberland is and will remain an attractive asset class. Our next scheduled update will come when the interim financials for the period ending 31 October 2009 are available. Current information about the Company is available on our website: www.cambiumfunds.com.
Donald Adamson Chairman 28 July 2009
05
Investment managers report
After the May 2009 acquisition of the Renwick property in New Zealand the Company is fully invested in ten timberland properties diversified by geography, species, age class and markets.
Investment managers report summary/
1 Established 1,500 acres of plantation on property in Australia and 900 acres of plantation on property in Brazil with excellent results 2 Storing logs on the stump on the southern US properties to benefit from biological growth until housing market begins to recover 3 Environmental markets continue to develop with carbon pollution reduction scheme set to be implemented in July 2011 in Australia
CP Cogent Asset Management LP is pleased with the performance of the current investments and remains focused on actively managing the existing portfolio. After the May 2009 acquisition of the Renwick property in New Zealand the Company is fully invested in ten timberland properties diversified by geography, species, age class and markets. The Renwick property is comprised of approximately 3,200 acres of mid-rotation pine located on the south island of New Zealand, acquired after year end, for about 2.3 million. The property, within 50 kilometres of a shipping port, is positioned to serve the log markets of Asia via the export market with harvest to begin in 2020. This property was purchased after 30 April 2009 and is not reflected in the financial statements of this annual report. We continue to make progress executing on our management plans. Brief outlines for each region are provided below: As we stated in our last report we completed the planting of approximately 1,500 acres on the Tarrangower property in New South Wales, Australia. The young tree crop has achieved above expectation survival and vigor due to diligent site preparation and plentiful rains. In Brazil, we completed the planting of the first 900 acres of the greenfield properties we acquired. These seedlings have achieved excellent survival rates and abundant moisture. We will continue to update you as we plant the remainder of these highly productive lands.
06
Year-over-year pine log prices are down about 20% due to the downturn in the US housing markets. We have continued to be disciplined in our harvesting approach and have curtailed the saw log harvest from the southern US properties. This timber volume is being stored on the stump and will continue to benefit from biological growth until markets recover. We are on target with our pulpwood harvest primarily from the thinning of mid-rotation pine plantations as prices for this material have remained favorable. We continue to receive hunting and recreational lease income from these properties.
During the period weakening values for land in the US impacted the NAV. The portfolio experienced a NAV decline of 5.5% since the last reporting date of 31 January 2009. The land market in the US remains weak and we believe there could be some further softening which would impact the NAV; however on a long-term basis we still expect the investments to have a similar return profile as we initially anticipated.
proposes that forestry activities that are in line with Kyoto Protocol rules will be eligible to participate in the scheme. The Tarrangower plantation in the Cambium portfolio meets these Kyoto Protocol rules and we are actively monitoring developments with an eye toward generating revenue for the portfolio during calendar year 2011. We look forward to updating you on the further development of the portfolio in future reports.
Environmental markets continued to develop during the period. In Australia the carbon pollution reduction scheme that was set to be implemented in 2010 For the year revenue was generated from has been postponed until July 2011. When the harvest of pulpwood, hunting leases and implemented the scheme will include a from our salinity credit project at Tarrangower mandatory cap and trade system and the as detailed in the financial statements. Although government proposes to include forestry less than forecast, this revenue result reflects our on an opt-in basis. The government operational choice to store logs on the stump given market conditions during the period.
CP COGENT ASSET MANAGEMENT LP Investment Manager 28 July 2009
Species plantable acres/

1 2
% by age class plantable acres/

1
4 3 1 Eucalyptus 11% 2 Pine 37% 3 Hardwood 14% 4 Unplanted* 38% * Unplanted to be planted with eucalyptus.
3 2
1 Unplanted 38% 2 Emerging 25% 3 Established 16% 4 Mature 21%
07
Board of directors
Donald Lindsay Adamson (aged 50), Independent Non-Executive Chairman Donald Adamson has 28 years experience in fund management, corporate finance and private equity. He acts as director or chairman of a number of listed and privately held investment companies including The Lindsell Train Investment Trust Plc, Invesco Leveraged High Yield Fund Limited, F&C Commercial Property Trust Limited, JP Morgan Progressive Multi-Strategy Fund Limited, and other companies. He holds an MA (Hons) from University College, Oxford in History and Economics and carried out postgraduate research at Nuffield College, Oxford in private equity investment. He is a member of the Securities & Investment Institute and chairman of the Offshore Committee of the Association of Investment Companies. Martin Willaume Richardson (aged 60), Independent Non-Executive Director Martin Richardson has been a partner of the Jersey practice of Rawlinson & Hunter since 1987, specialising in trust and mutual fund administration services to the financial services sector. He is a director of Diversified Portfolios Fund Limited, The Equity Partnership Investment Company Plc, Real Estate Opportunities Limited and a number of other companies. He has a BA in Science Engineering from the Royal Military College of Science, Shrivenham and served in the Royal Engineers between 1968 and 1977. On leaving the army, he qualified as a chartered accountant with Coopers & Lybrand, Jersey for whom he worked from 1977 to 1981.
Colin Sean McGrady (aged 38), Non-Executive Director Colin McGrady is a founding partner of Cogent and is head of its asset management business. Colin is a director of Cogent GP, LLC and Cogent Partners Investment, LLC. Prior to co-founding Cogent, Colin was a member of the eight person investment team at The Crossroads Group, a US$2 billion private equity fund of funds in Dallas, Texas. Prior to Crossroads, Colin spent 3 years at Bain & Company in the USA and Japan. Colin earned an MBA from Harvard Business School, received a BA in Economics from Brigham Young University, and is a chartered financial analyst. Robert James Rickman (aged 51), Independent Non-Executive Director Robert Rickman is a director of and adviser to a number of forestry and forest industry companies in the UK and internationally. He is a founding partner of the Rockley Group, making and managing technology based investments worldwide. From 2001 until 2007 he was a director and latterly chairman of the AIM quoted Highland Timber Plc, with forestry operations in the UK and New Zealand. Robert was a non-executive director of Bookham Technology Plc from 1994 to 2004 during which time the company was listed on the LSE and NASDAQ. He has held various non-executive and executive positions with a number of forestry companies (including until 1999, FIM Services Limited) and was an economist for the government of St Lucia. He is a current member of the UK Institute of Chartered Foresters. Robert has an MA in Agriculture and Forest Science and a MSc in Forestry and its relation to Land Management from the University of Oxford.
William Taylor Spitz (aged 58), Independent Non-Executive Director William Spitz is a principal and director of Diversified Trust Company and is also vice-chancellor for Investments Emeritus for Vanderbilt University. Prior to his retirement after 22 years of service, he was responsible for the management of the Universitys US$3.5 billion endowment as well as its treasury and technology transfer operations. During that period, he served on a number of advisory committees for timber, private equity and real estate funds and was the recipient of several significant awards given to prominent members of the endowment community. In addition to Cambium Global Timberland Limited, William serves as a director of MassMutual Financial Group and Acadia Realty. Previously, he served as a director of the Bradford Fund and was chair of the board of the Common Fund. Prior to joining Vanderbilt University in 1985, he was an officer of several investment management firms in New York. William is a chartered financial analyst and holds an MBA from the University of Chicago.
08
Directors report
The Directors present their annual report and the audited financial statements of Cambium Global Timberland Limited (the Company) and entities under its control (the Group) for the year ended 30 April 2009. Business of the Company The Company was incorporated as a closed-ended Jersey registered investment company with limited liability on 19 January 2007. The ordinary shares were successfully admitted to AIM, a market of the London Stock Exchange, with a dual listing on the Channel Islands Stock Exchange (CISX). The Company aims to establish a portfolio comprising geographically diverse assets located both in mature markets and in developing markets where potentially higher returns may be generated but with commensurately higher risks. The Company will initially target investments in North and South America and the Asia-Pacific region (including Australia and New Zealand), but may invest in other regions on an opportunistic basis, as determined by the Investment Manager with the approval of the Board. The Companys strategy is to generate superior total returns to shareholders by establishing an optimised portfolio of timberland properties and timberland-related investments diversified by location, age class and species. The Company will invest in a global portfolio of forestry-based properties which can be managed on an environmentally and socially sustainable basis. Assets will be managed for timber production, environmental credit production or both. A review of business during the year and future developments is contained in the Chairmans Statement and Investment Managers Report. Results and dividends The results of the Group are stated on page 14. The Company paid a final dividend totalling 3,130,500 (2008: nil) in respect of the period ended 30 April 2008. The Directors proposed a dividend of 3 pence per share in regards to the year ended 30 April 2009. Directors The Directors of the Company are detailed below:
Appointed
Colin McGrady Donald Adamson Martin Richardson Robert Rickman William Spitz No Directors resigned during the year. Directors interests The following Directors had interests in the shares of the Company at 30 April 2009:
Number of shares
13 February 2007 19 January 2007 19 January 2007 13 February 2007 13 February 2007
% held
Colin McGrady Donald Adamson Martin Richardson William Spitz Colin McGrady is a founding partner of CP Cogent Asset Management LP who acts as Investment Manager. Directors remuneration During the year/period the Directors received the following remuneration in the form of fees from the Company:
50,000 50,000 50,000 50,000
0.02 0.02 0.02 0.02
2009
2008
Donald Adamson Martin Richardson Robert Rickman William Spitz
40,000 25,000 25,000 25,000 115,000
49,753 31,096 31,096 31,096 143,041
Colin McGrady waived his Directors fees for the year (2008: nil).
09
Directors report continued
Substantial shareholdings Shareholders with holdings of more than 3% of the issued shares of the Company as at 17 July 2009 were as follows:
Name of investors Number of shares % held
Baillie Gifford Rensburg Sheppards Investment Management British Steel Pensions Deutsche Bank Private Wealth Management SVM Asset Management Artemis Investment Management AXA Framlington Investment Managers Speirs & Jeffrey, stockbrokers Ashcourt Asset Management Rathbones JP Morgan Asset Management West Yorkshire PF
16,450,000 11,417,407 10,000,000 6,235,697 6,200,000 5,000,000 4,618,500 4,485,256 4,344,960 4,198,170 3,481,517 3,150,000 79,581,507
15.76 10.94 9.58 5.98 5.94 4.79 4.43 4.30 4.16 4.02 3.34 3.02 76.26
Corporate governance As a Jersey incorporated company and under the AIM Rules for companies, the Company is not required to comply with the Combined Code published by the Financial Reporting Council (the Combined Code). However, it is the Companys policy to comply with best practice on good corporate governance that is applicable to investment companies. The Board has therefore considered the principles and recommendations of the AICs Code of Corporate Governance (the AIC Code) by reference to the AIC Corporate Governance Guide for Investment Companies (the AIC Guide). The AIC Code, as explained by the AIC Guide, addresses all the principles set out in Section 1 of the Combined Code, as well as setting out additional principles and recommendations on issues specific to investment companies. The Board considers that it is appropriate to report against the principles and recommendations of the AIC Code, and by reference to the AIC Guide (which incorporates the Combined Code), and that the Company has complied with the principles and recommendations throughout the accounting period, except where indicated below. The following statement describes how the relevant principles of governance are applied to the Company. The Board The Board currently consists of five Non-Executive Directors, the Chairman is Donald Adamson. The Directors consider that the Chairman is independent for the purposes of the AIC Code. The Board considers that, with the exception of Colin McGrady, the Directors are independent of the Investment Manager. The Company has no Executive Directors and no employees. However, the Board has engaged external companies to undertake the investment management, administrative activities of the Company and the production of the annual report and financial statements which are independently audited. Clear documented contractual arrangements are in place between these firms that define the areas where the Board has delegated responsibility to them. Whilst the Board delegates responsibility, it retains accountability for the functions it delegates and is responsible for the systems of internal control. The Board meets at least four times a year and between these formal meetings there is regular contact with the Investment Manager, Nomad and Broker. The Directors are kept fully informed of investment and financial controls and other matters that are relevant to the business of the Company and should be brought to the attention of the Directors. The Directors also have access to the Company Secretary and, where necessary in the furtherance of their duties, to independent professional advice at the expense of the Company. The Board has a breadth of experience relevant to the Company and where they deem it necessary will discharge their responsibility as Directors. The Directors believe that any changes to the Boards composition can be managed without undue disruption. With any new appointment of a Director to the Board, consideration will be given as to whether a formal induction process is appropriate and if any relevant training is to be offered. The Board considers agenda items laid out in the notice and agenda which are formally circulated to the Board in advance of a meeting as part of the Board papers and therefore Directors may request any agenda items to be added that they consider appropriate for Board discussion. Additionally, each Director is required to inform the Board of any potential or actual conflicts of interest prior to Board discussion. All members of the Board are expected to attend each Board meeting and to arrange their schedules accordingly, although non-attendance is unavoidable in certain circumstances.
10
The Board continued The number of meetings of the full Board and the Audit Committee attended by each Director is set out below:
Board meetings Held Attended Audit Committee meetings Held Attended Other meetings Held Attended
Colin McGrady Donald Adamson Martin Richardson Robert Rickman William Spitz
5 5 5 5 5
5 5 5 5 5
N/A 2 2 2 2
N/A 2 2 1 1
4 4 4 4 4
2 4 4 2 2
The Board has been continuously engaged in a review of the Companys strategy with the Investment Manager and Broker to ensure the employment of appropriate strategies under prevailing market, political and economic conditions at any particular time, within the overall investment restrictions of the Company. To support the review of the strategy, the Board has focused at Board meetings on a review of individual investments and returns, country exposure, the overall portfolio performance and associated matters such as gearing and pipeline investment opportunities. Additionally a strong focus of attention is given to marketing/investor relations, risk management and compliance, peer group information and industry issues. The Board evaluates each Directors own performance on an annual basis and believes that the mix of skills, experience, ages and length of service are appropriate to the requirements of the Company and in accordance with the AIC Code. Directors shall retire and stand for re-election at intervals of no more than three years. Colin McGrady as the only Non-Independent Director will stand for re-election every year. Each Director is appointed subject to the provisions of the Articles of Association in relation to retirement. Board responsibilities The Directors meets at least four times a year to consider, as appropriate, such matters as: the overall objectives for the Company; risk assessment and management, including reporting, monitoring, governance and control; any shifts in strategy that may be appropriate in light of changes in market conditions; the appointment, and ongoing monitoring, through regular reports and meetings of the Investment Manager, administrator and other service providers; review of the Companys investment performance; share price performance; statutory obligations and public disclosure; shareholder profile of the Company; and the transactional and other general matters affecting the Company. These matters are discussed by the Board to clearly demonstrate the seriousness with which the Directors take its fiduciary responsibilities and as an ongoing means of measuring and monitoring the effectiveness of its actions. Committees of the Board The Board has not deemed it necessary to appoint a Nomination or Remuneration Committee as, being comprised wholly of Non-Executive Directors, the whole Board considers these matters. Audit Committee The Board operates an Audit Committee which comprises of Donald Adamson, Martin Richardson, Robert Rickman and William Spitz. Martin Richardson serves as Chairman of the Committee. The Audit Committee operates within defined terms of reference as agreed by the Board which are available from the Company Secretary upon request. The Audit Committee function is to ensure the Companys financial performance is properly reported on and monitored. The Committee therefore reviews the following: the annual and interim financial statements; results; internal control systems and procedures; accounting policies of the Company; the auditors effectiveness and independence; announcements; and the auditors remuneration and engagement, as well as the auditors independence and any non-audit services provided by them. When required the Audit Committee meetings are also attended by the Administrator and the Companys auditor. The number of meetings of the Audit Committee attended by each Director is set in the table detailed above.
11
Directors report continued
Internal controls The Board is ultimately responsible for the Companys system of internal control and for reviewing its effectiveness. The Board confirms that there is an ongoing process for identifying, evaluating and managing the significant risks faced by the Company. This process has been in place for the year under review and up to the date of approval of this annual report and financial statements. In line with general market practice for investment companies, the Directors do not conduct a formal annual review of the internal controls. However, the Board does conduct an annual review of the financial reporting procedures and corporate governance controls and feels that the procedures employed by the service providers adequately mitigate the risks to which the Company is exposed. The key procedures which have been established to provide effective internal controls are as follows: Praxis Property Fund Services Limited, under a delegation agreement dated 24 March 2009, is responsible for the provision of administration and company secretarial duties; the Directors of the Company clearly define the duties and responsibilities of their agents and advisers in the terms of their contracts; the Board reviews financial information produced by the Investment Manager on a regular basis; the Company does not have an internal audit department. All of the Companys management functions are delegated to independent third parties and it is therefore felt that there is no need for the Company to have an internal audit facility; and on an ongoing basis, independently prepared compliance reports are provided at each quarterly Board meeting. The internal control systems are designed to meet the Companys particular needs and the risks to which it is exposed. Accordingly, the internal control systems are designed to manage rather than eliminate the risk of failure to achieve business objectives and by their nature can only provide reasonable and not absolute assurance against misstatement and loss. Relations with shareholders The Broker and Manager maintain a regular dialogue with major shareholders, the feedback from which is reported to the Board. In addition, Board members will be available to respond to shareholders questions at the Annual General Meeting (AGM). The Board monitors the trading activity and shareholder profile on a regular basis and maintains contact with the Companys Broker to ascertain the views of shareholders. Shareholder sentiment is also ascertained by the careful monitoring of the premium/discount that the shares are traded in the market when compared to those experienced by similar companies. Major shareholders are contacted directly by the Broker on a regular basis. The Company reports formally to shareholders twice a year and a proxy voting card is sent to shareholders with the annual report and financial statements. Additionally, current information is provided to shareholders on an ongoing basis through the Companys website. The Company Secretary monitors the voting of the shareholders and proxy voting is taken into consideration when votes are cast at the AGM. Shareholders may contact the Directors via the Company Secretary. Directors responsibilities The Directors are responsible for preparing the financial statements in accordance with applicable law and IFRS. Company law requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to: select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financials statements; and prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Group will continue in business. The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies (Jersey) Law 1991. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors confirm that they have complied with the above requirements in preparing the financial statements. Auditors The auditor of the Company, KPMG Channel Islands Limited, has expressed its willingness to continue in office and a resolution giving authority to re-appoint will be proposed at the forthcoming AGM. By order of the Board
Donald Adamson 28 July 2009
Martin Richardson 28 July 2009
12
Independent auditors report to the members
We have audited the Group and Company financial statements (the financial statements) of Cambium Global Timberland Limited for the year ended 30 April 2009 which comprise the consolidated and Company income statement, the consolidated and Company balance sheets, the consolidated and Company statement of changes in equity, the consolidated and Company cash flow statement and the related notes. These financial statements have been prepared under the accounting policies set out therein. This report is made solely to the Companys members, as a body, in accordance with Article 110 of the Companies (Jersey) Law 1991. Our audit work has been undertaken so that we might state to the Companys members those matters we are required to state to them in an auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Companys members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of Directors and auditors As described in the Statement of Directors Responsibilities on page 12, the Companys Directors are responsible for preparation of the financial statements in accordance with applicable law and International Financial Reporting Standards. Our responsibility is to audit the financial statements in accordance with the relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Companies (Jersey) Law 1991. We also report to you if, in our opinion, the Company has not kept proper accounting records or if we have not received all the information and explanations we require for our audit. We read the Directors Report and other information accompanying the financial statements and consider the implications for our report if we become aware of any apparent misstatements within it. Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the Directors in the preparation of the financial statements and of whether the accounting policies are appropriate to the Groups and Companys circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. Opinion In our opinion the financial statements: give a true and fair view, in accordance with International Financial Reporting Standards, of the state of the Groups and Companys affairs as at 30 April 2009 and of the Groups and Companys loss for the year then ended; and have been properly prepared in accordance with the Companies (Jersey) Law 1991.
Chartered Accountants KPMG Channel Islands Limited 5 St Andrews Place Charing Cross St Helier Jersey JE4 8WQ 28 July 2009
a) The maintenance and integrity of the Cambium Global Timberland Limited website is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements or audit report since they were initially presented on the website. b) Legislation in Jersey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
13
Consolidated income statement

for the year ended 30 April 2009
Notes
For the year ended 30 April 2009
For the period from 19 January 2007 to 30 April 2008
Revenue Cost of sales Gross profit Increase in fair value of investment property and plantations Administrative expenses Other operating forestry expenses Revaluation on buildings, plant and equipment Establishment expenses
872,880 (542,453) 330,427
699,828 (354,140) 345,688 2,862,320 (2,654,022) (118,371) (43,277) (3,391,375) (6,207,045) (2,999,037) (30,035) 5,659,705 (70) 5,629,600 (62,933) 2,567,630 (1,295,985) 1,271,645 1.22 pence
19 7 20
2,735,810 (2,158,873) (1,668,500) (11,320) (3,838,693)
Operating loss Gain/(losses) on available-for-sale assets Finance income Finance costs Net finance income Net foreign exchange losses (Loss)/profit before taxation Taxation (Loss)/profit for the year/period attributable to shareholders Basic and diluted (loss)/earnings per share 16 14 12 8 10
(772,456) 25,150 1,952,737 (2,827) 1,975,060 (17,898,045) (16,695,441) (1,153,145) (17,848,586) (17.10) pence
All items in the above statement derive from continuing operations. All income is attributable to the equity holders of the Parent Company. There are no minority interests. The notes on pages 22 to 49 form an integral part of these annual financial statements.
14
Consolidated balance sheet

at 30 April 2009
Notes
30 April 2009
30 April 2008
Non-current assets Investment property and plantations Buildings, plant and equipment Intangible assets Deferred tax assets 19 20 21 14 81,428,366 500,227 122,650 219,143 82,270,386 Current assets Trade and other receivables Available-for-sale investments Forward exchange currency contracts Cash and cash equivalents 23 25 26 27 179,162 356,895 23,689,389 24,225,446 Total assets Current liabilities Trade and other payables 28 1,159,414 1,159,414 Non-current liabilities Deferred tax liabilities 14 3,340,386 3,340,386 Total liabilities Net assets Equity Stated capital Distributable reserve Translation reserve Revaluation reserve Retained (loss)/earnings Total equity Net asset value per share 17 29 30 30 30 2,000,000 102,350,000 17,288,129 65,344 (19,707,441) 101,996,032 0.98 2,000,000 102,350,000 495,708 52,292 1,271,645 106,169,645 1.02 4,499,800 101,996,032 1,920,265 1,920,265 2,391,939 106,169,645 471,674 471,674 106,495,832 774,630 8,964,000 43,106 73,757,639 83,539,375 108,561,584 23,807,920 461,120 123,164 630,005 25,022,209
These financial statements were approved and authorised for issue on 28 July 2009 by the Board of Directors.
Donald Adamson Director
Martin Richardson Director
The notes on pages 22 to 49 form an integral part of these annual financial statements.
15
Consolidated statement of changes in equity

Stated capital
Distributable reserve
Translation reserve
Revaluation reserve
Retained earnings
Total
At 19 January 2007 Currency translation differences Increase in fair value of intangible assets Decrease in fair value of available-for-sale investments Total income recognised directly in equity Net profit for the period Total recognised income and expenses for the period Issue of ordinary share capital Reduction of stated capital account (note 29) At 30 April 2008 Currency translation differences Decrease in fair value of intangible assets Realisation of available-for-sale investments Total income recognised directly in equity Loss for the year Total recognised income and expenses for the year Dividend (note 15) At 30 April 2009
495,708
69,942 (17,650)
495,708 69,942 (17,650)
495,708
52,292
1,271,645
548,000 1,271,645
104,350,000 (102,350,000) 2,000,000
102,350,000 102,350,000
495,708 495,708 16,792,421
52,292 52,292 (4,598) 17,650
1,271,645 1,271,645
1,819,645 104,350,000 106,169,645 16,792,421 (4,598) 17,650
16,792,421
13,052
(17,848,586)
16,805,473 (17,848,586)
2,000,000
102,350,000
16,792,421 17,288,129
13,052 65,344
(17,848,586) (3,130,500) (19,707,441)
(1,043,113) (3,130,500) 101,996,032
16
Consolidated cash flow statement

Cash flows from operating activities Operating loss for the year/period Adjustments for: Increase in fair value of investment property and plantations Depreciation Revaluation on buildings, plant and equipment Decrease/(increase) in trade and other receivables Increase in trade and other payables (2,735,810) 1,483 11,320 389,652 472,466 (1,860,889) Net cash used in operating activities Cash flows from investing activities Purchase of buildings, plant and equipment Purchase of land and plantations Cost capitalised to plantations Purchase of intangible assets Purchase of available-for-sale investments Disposal of available-for-sale investments Loss on foreign exchange contracts Net cash used in investing activities Cash flows from financing activities Net proceeds from the issue of shares Dividend paid Finance income Finance costs Net cash (used in)/from financing activities Net (decrease)/increase in cash and cash equivalents Foreign exchange movements Balance at the beginning of the year/period Balance at the end of the year/period The notes on pages 22 to 49 form an integral part of these annual financial statements. (3,130,500) 1,951,799 (2,827) (1,181,528) (57,380,805) 7,312,555 73,757,639 23,689,389 104,350,000 5,464,549 (70) 109,814,479 74,154,905 (397,266) 73,757,639 (34,248) (42,743,530) (1,597,677) (1,993,200) 11,000,000 (18,197,277) (53,565,932) (469,679) (19,688,534) (559,827) (43,714) (8,981,650) (29,743,404) (2,633,345) (2,862,320) 880 43,277 (563,077) 464,107 (2,917,133) (5,916,170) (772,456) (2,999,037)
17
Company income statement

Notes
Administrative expenses Establishment expenses Operating loss Gains/(losses) on available-for-sale assets Finance income Net finance income Net foreign exchange (loss)/gain Loss for the year/period All items in the above statement derive from continuing operations. The notes on pages 22 to 49 form an integral part of these annual financial statements.
(1,794,157) (1,794,157)
(2,580,212) (3,391,375) (5,971,587) (30,035) 5,791,060 5,761,025 31,137 (179,425)
12 8
25,150 1,787,251 1,812,401 (3,164,409) (3,146,165)
18
Company balance sheet

at 30 April 2009
Notes
At 30 April 2009
At 30 April 2008
Non-current assets Investment in subsidiary undertakings Loans to subsidiary undertakings 18 24 2,017,808 77,686,122 79,703,930 Current assets Trade and other receivables Available-for-sale investments Forward exchange currency contracts Cash and cash equivalents 23 25 26 27 176,758 356,895 18,673,009 19,206,662 Total assets Current liabilities Trade and other payables Total liabilities Net assets Equity Stated capital Distributable reserve Revaluation reserve Retained loss Total equity The notes on pages 22 to 49 form an integral part of these annual financial statements. 29 30 30 2,000,000 102,350,000 (6,456,090) 97,893,910 2,000,000 102,350,000 (17,650) (179,425) 104,152,925 28 1,016,682 1,016,682 97,893,910 174,823 174,823 104,152,925 98,910,592 599,517 8,964,000 43,106 72,928,781 82,535,404 104,327,748 1,191,867 20,600,477 21,792,344
19
Company statement of changes in equity

Stated capital
Distributable reserve
Revaluation reserve
Retained loss
Total
At 19 January 2007 Revaluation of available-for-sale investments (directly in equity) Net loss for the period Total recognised income and expenses for the period Issue of ordinary share capital Reduction of stated capital account (note 29) At 30 April 2008 Net loss for the year Realisation of available-for-sale investments (directly in equity) Total recognised income and expenses for the year Dividend (note 15) At 30 April 2009
(17,650)
(179,425)
(17,650) (179,425)
104,350,000 (102,350,000) 2,000,000
102,350,000 102,350,000
(17,650) (17,650) 17,650
(179,425) (179,425) (3,146,165)
(197,075) 104,350,000 104,152,925 (3,146,165) 17,650
2,000,000
102,350,000
17,650
(3,146,165) (3,130,500) (6,456,090)
(3,128,515) (3,130,500) 97,893,910
20
Company cash flow statement

Cash flows from operating activities Operating loss for the year/period Adjustments for: Decrease/(increase) in trade receivables Increase in trade and other payables 422,759 841,859 1,264,618 Net cash used in operating activities Cash flows from investing activities Subsidiaries acquired Available-for-sale investments purchased Disposal of available-for-sale investments Increase in loans to subsidiary undertakings Net cash used in investing activities Cash flows from financing activities Net proceeds from the issue of shares Dividends paid Finance income Loss on foreign exchange contracts Net cash (used in)/from financing activities Foreign exchange loss Net (decrease)/increase in cash and cash equivalents for the year/period Balance at the beginning of the year/period Balance at the end of the year/period The notes on pages 22 to 49 form an integral part of these annual financial statements. (3,130,500) 1,981,470 (18,197,277) (19,346,307) (136,833) (54,255,772) 72,928,781 18,673,009 104,350,000 5,791,060 110,141,060 (11,969) 72,928,781 72,928,781 (825,941) (1,993,200) 11,000,000 (42,423,952) (34,243,093) (1,191,867) (8,981,650) (30,035) (20,600,477) (30,804,029) (529,539) (599,517) 174,823 (424,694) (6,396,281) (1,794,157) (5,971,587)
21
Notes to the financial statements

1 General information The Company and its subsidiaries, including special purpose vehicles (SPVs) controlled by the Company, were established to invest in a global portfolio of forestry-based properties which can be managed on an environmentally and socially sustainable basis. Assets may be managed for timber production, environmental credit production or both. The Group currently owns forestry assets located in Australia, Hawaii, Brazil and the southern United States. The Company is a closed-ended company with limited liability, incorporated in Jersey, Channel Islands on 19 January 2007. The address of its registered office is 5 Castle Street, St Helier, Jersey JE2 3RT. The financial statements were approved and authorised for issue on 28 July 2009 and signed by Donald Adamson and Martin Richardson on behalf of the Board. The Company has its primary listing on AIM, a market of the London Stock Exchange, and a dual listing on the Channel Islands Stock Exchange. 2 Basis of preparation The financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS), which comprise standards and interpretations approved by the International Accounting Standards Board (IASB), and International Accounting Standards and Standards Interpretations Committee interpretations approved by the International Accounting Standards Committee that remain in effect. The financial statements have been prepared in Pounds Sterling, which is the presentational currency of the Group, and under the historical cost convention, except for investment property, plantations, buildings, intangible assets and certain financial instruments which are carried at fair value. Standards and interpretations in issue and not yet effective At the date of authorisation of these financials statements, the following standards and interpretations, which have not been applied in these financial statements, were in issue but not yet effective:
New standards For accounting periods commencing on or after
IFRS 8:
Operating Segments
1 January 2009
For accounting periods commencing on or after
Revised and amended standards
IFRS 1: IFRS 2: IFRS 3: IFRS 5: IAS 1: IAS 1: IAS 1: IAS 16:
First time Adoption of International Financial Reporting Standards amendments relating to cost of an investment on first-time adoption Share-based Payment amendment relating to vesting conditions and cancellations Business Combinations comprehensive revision on applying the acquisition method Non-current Assets Held for Sale and Discontinued Operations amendments resulting from May 2008 Annual Improvements to IFRS Presentation of Financial Statements comprehensive revision including requiring a statement of comprehensive income Presentation of Financial Statements amendments relating to disclosure of puttable instruments and obligations arising on liquidation Presentation of Financial Statements amendments resulting from May 2008 Annual Improvements to IFRS Property, Plant and Equipment amendments resulting from May 2008 Annual Improvements to IFRS
1 January 2009 1 January 2009 1 July 2009 1 July 2009 1 January 2009 1 January 2009 1 January 2009 1 January 2009
22
2 Basis of preparation continued Standards and interpretations in issue and not yet effective continued
Revised and amended standards For accounting periods commencing on or after
IAS 19: IAS 20: IAS 23: IAS 27: IAS 27: IAS 27: IAS 28: IAS 28: IAS 29: IAS 31: IAS 31: IAS 32: IAS 36: IAS 38: IAS 39: IAS 39: IAS 40: IAS 41:
Interpretations
Employee Benefits amendments resulting from May 2008 Annual Improvements to IFRS Government Grants and Disclosure of Government Assistance amendments resulting from May 2008 annual improvements to IFRS Borrowing Costs amendments resulting from May 2008 Annual Improvements to IFRS Consolidated and Separate Financial Statements consequential amendments arising from amendments to IFRS 3 Consolidated and Separate Financial Statements amendments relating to cost of an investment on first time adoption Consolidated and Separate Financial Statements amendments resulting from May 2008 Annual Improvements to IFRS Investments in Associates consequential amendments arising from amendments to IFRS 3 Investments in Associates amendments resulting from May 2008 Annual Improvements to IFRS Financial Reporting in Hyperinflationary Economies amendments resulting from May 2008 Annual Improvements to IFRS Interests in Joint Ventures consequential amendments arising from amendments to IFRS 3 Interests in Joint Ventures amendments resulting from May 2008 Annual Improvements to IFRS Financial Instruments: Presentation amendments relating to puttable instruments and obligations arising on liquidation Impairment of Assets amendments resulting from May 2008 Annual Improvements to IFRS Intangible Assets amendments resulting from May 2008 Annual Improvements to IFRS Financial Instruments: Recognition and Measurement amendments resulting from May 2008 Annual Improvements to IFRS Financial Instruments: Recognition and Measurement amendments for eligible hedged items Investment Property amendments resulting from May 2008 Annual Improvements to IFRS Agriculture amendments resulting from May 2008 Annual Improvements to IFRS
1 January 2009 1 January 2009 1 January 2009 1 July 2009 1 January 2009 1 January 2009 1 July 2009 1 January 2009 1 January 2009 1 January 2009 1 January 2009 1 January 2009 1 January 2009 1 January 2009 1 January 2009 1 July 2009 1 January 2009 1 January 2009
For accounting periods commencing on or after
IFRIC 13: IFRIC 15: IFRIC 16: IFRIC 17: IFRIC 18:
Customer Loyalty Programmes Agreements for the Construction of Real Estate Hedges of a Net investment in a Foreign Operation Distributions of Non-cash Assets to Owners Transfers of Assets from Customers
1 July 2008 1 January 2009 1 October 2008 1 July 2009 1 July 2009
23
Notes to the financial statements continued

2 Basis of preparation continued Standards and interpretations in issue and not yet effective continued The Directors anticipate that, with the exception of IAS 1 and IFRS 8 as discussed below, the adoption of these standards and interpretations in future periods will not have material impact on the financial statements of the Group. IAS 1 (revised) Presentation of Financial Statements (effective from 1 January 2009). The revised standard will prohibit the presentation of items of income and expense (that is, non-owner changes in equity) in the statement of changes in equity, requiring non-owner changes in equity to be presented separately from owner changes in equity. All non-owner changes in equity will be required to be shown in a performance statement, but entities can choose whether to present one performance statement (the statement of comprehensive income) or two statements (the income statement and statement of comprehensive income). The Group and Company will apply IAS 1 (revised) from 1 January 2009. It is likely that both the income statement and statement of comprehensive income will be presented as performance statements. IFRS 8 Operating Segments (effective for accounting periods beginning on or after 1 January 2009). This standard requires an entity to adopt the management approach to reporting on the financial performance of its operating segments. Generally, the information to be reported would be what management uses internally for evaluating segment performance and deciding how to allocate resources to operating segments. Such information may be different from what is used to prepare the income statement and balance sheet. The standard also requires explanations of the basis on which the segment information is prepared and reconciliations to the amounts recognised in the income statement and balance sheet. 3 Significant accounting policies A summary of the principal accounting policies, all of which have been applied consistently throughout the year, is set out below. The preparation of financial statements in conformity with IFRS requires the use of critical accounting estimates. It also requires management to exercise its judgement in the process of applying accounting policies. The areas involving a high degree of judgement or complexity, or areas where the assumptions and estimates are significant to financial statements, are disclosed in note 4. Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and its subsidiaries, including SPVs controlled by the Company, made up to 30 April 2009. Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefit from its activities. When necessary, adjustments are made to the financial statements of subsidiaries and SPVs to bring the accounting policies used into line with those used by the Group. All intra-group transactions, balances, income and expenses are eliminated on consolidation. Revenue and other income Revenue is recognised when it is probable that the economic benefits associated with the transaction will flow to the Group and the amount of revenue can be measured reliably. Revenues are accounted for on an accruals basis. Revenue comprises: a) Sales harvested timber or right of way Where revenue is obtained by the sale of harvested timber or right of way, it is recognised when the significant risks and returns have been transferred to the buyer. In the case of harvested timber, this is generally on unconditional exchange except where payment on completion is expected to occur significantly after exchange. For conditional exchanges, sales are recognised when the conditions are satisfied. b) Lease income Lease income is recognised over the lease term on a straight-line basis, unless another systematic basis is more representative of the time pattern in which benefit use derived from the leased asset is diminished. c) Grant income Government grants are recognised on receipt of funds or earlier if there is reasonable assurance that the conditions of the grant will be met. They are accounted for in the income statement at fair value. Finance income Interest income is accrued on a time basis by reference to the principal outstanding and the effective interest rate applicable. Foreign currencies a) Functional and presentational currency Items included in the financial statements of each of the Group entities are measured in the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in Pounds Sterling, which is the Companys functional and presentational currency. b) Transactions and balances Transactions in currencies other than Pounds Sterling are recorded at the rates of exchange prevailing on the dates of transactions. At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Non-monetary assets and liabilities that are carried at fair value and denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Gains and losses arising on retranslation are included in net profit or loss for the period, except for exchange differences arising on non-monetary assets and liabilities where the changes in fair value are recognised directly to equity.
24
3 Significant accounting policies continued Foreign currencies continued c) Group companies The results and financial position of all the Group entities that have a functional currency different from the presentational currency are translated into the presentation currency as follows: (i) assets and liabilities for each balance sheet presented are translated at the closing rate at the date of the balance sheet; (ii) income and expenses for the income statement are translated at the average exchange rate prevailing in the period; and (iii) all resulting exchange differences are recognised as a separate component of equity. On consolidation, the exchange differences arising from the translation of the net investment in foreign entities are taken to shareholders equity. When a foreign operation is sold, such exchange differences are recognised in the income statement as part of the gain or loss on sale. Rates applied at year end to convert to Pounds Sterling:
2009 Closing rate Average rate 2008 Closing rate Average rate
Australian Dollar Brazilian Real Hungarian Forint New Zealand Dollar US Dollar
2.0383 3.2381 324.6552 2.6168 1.4790
2.1747 3.3199 386.0726 2.6574 1.6769
2.1110 N/A 322.0830 N/A 1.9714
2.2876 N/A 347.1827 N/A 2.0107
The average rate was calculated from the date the subsidiary was acquired to 30 April 2009. Operating profit/loss Operating profit or loss includes net gains and losses on revaluation of investment property and plantations, as reduced by administrative expenses and operating costs and excludes finance costs and income. Expenses All expenses are accounted for on an accruals basis and include fees and other expenses paid to the administrators, the Investment Manager and the Directors. Expenses which are incidental to the acquisition of an investment property or plantation are included within the cost of that property and plantation, for example this will include legal fees, stamp duty, founders fees, initial valuation fees and due diligence fees. Establishment expenses Establishment expenses incurred on the launch of the Company have been recognised in the income statement when incurred. Impairment The carrying amount of the Groups non-financial assets, other than investment property and plantations, buildings, improvements and intangible assets are reviewed at each reporting date to determine whether there is any indication of impairment. If such indication exists the assets recoverable amount is estimated. Any impairment loss is recognised in the income statement whenever the carrying amount of an asset exceeds its recoverable amount. For the purposes of assessing impairment, assets are grouped together at the lowest levels for which there are separately identifiable cash flows. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assets carrying amount, after the reversal, does not exceed the amount that has been determined, net of applicable depreciation, if no impairment loss had been recognised. Taxation The Company is registered as a Jersey tax exempt company. The Company was exempt from Jersey taxation on income derived from outside of Jersey and bank interest earned in Jersey under the Income Tax (Jersey) Ordinance, 1961. This law was amended for assessment periods starting 1 January 2008 under Income Tax (Amendment 28) (Jersey) Law 2007. The Company will no longer be exempt from tax, it will be taxed at a corporate rate of 0%. A fixed annual fee of 600 was paid to the States of Jersey in respect of the exemption up to 31 December 2007. No charge to Jersey taxation arises on capital gains. The Group is liable to foreign tax arising on activities in the overseas subsidiaries. The Company has subsidiary operations in Australia, Texas (USA), Delaware (USA), Brazil, British Virgin Islands and Hungary. The tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit or net loss as reported in the income statement because it excludes items of income and expense that are taxable or deductible in other years or that are never taxable or deductible. The Groups liability for current tax is calculated using tax rates that have been enacted by the balance sheet date.
25

3 Significant accounting policies continued Taxation continued Deferred tax is the tax arising on differences on the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the near future. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Investment property and plantations a) Investment property Land is classified as investment property as it is held for capital appreciation. Investment property is recognised as an asset when it is probable that the future economic benefits that are associated with the property will flow to the enterprise and the cost of the property can be reliably measured. Investment property is initially measured at cost, including transaction costs. Investment property is remeasured at fair value, which is the amount for which the property could be exchanged between knowledgeable, willing parties in an arms length transaction. The fair values are determined by professional valuations on a six-monthly basis. Gains or losses arising from changes in the fair value of investment property are included in the income statement. b) Plantations Plantations are recognised as biological assets when the Group controls the asset as a result of past events, it is probable that future economic benefits will flow to the Group, and the fair value or cost of the asset can be measured reliably. Plantations are measured on initial recognition and at each balance sheet date at fair value. Fair value is determined by professional valuers on a six-monthly basis. Any changes in fair values are recognised in the income statement. Agricultural produce harvested from plantations are classified as harvested timber. Plantations can be divided in two classifications: i) Pre-merchantable timber Agricultural produce that has not matured to an age and class to be sold as harvested product is classified within this asset class. Once the pre-merchantable trees mature they are transferred to merchantable timber at fair value. ii) Merchantable timber Plantations are classified as merchantable timber when they mature to an age that the trees can be traded actively in the markets. This asset class does not include harvested trees. The age at which trees are transferred into this class can differ by type of tree. Currently the majority of trees owned by the Group are transferred at the age of 15 years. c) Harvested timber Plantations harvested are transferred at fair value less point of sale costs as at the date of harvest and are reclassified to inventory if the harvest has not been sold at the date of reporting. Inventory is carried at the lower of the fair value on which it was transferred or net realisable value. Buildings, plant and equipment Buildings, plant and equipment (with the exception of motor vehicles and furniture, fixtures and fittings) are initially recognised at purchase price plus any directly attributable costs. It is subsequently revalued to fair value. The fair value of property is determined on a six-monthly basis by independent external appraisal. Revaluation gains are recognised in equity through the revaluation reserve with revaluation losses, to value lower than cost, recognised in the income statement. Subsequent costs are included in the carrying amount of buildings, when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they incurred. Motor vehicles and furniture, fixtures and fittings are recognised at purchase cost less accumulated depreciation and any recognised impairment losses. Depreciation is provided at the rate of 12.5% per annum on motor vehicles on a diminishing balance basis. Depreciation is provided at the rate of 10% per annum on furniture on a straight-line basis.
26
3 Significant accounting policies continued Intangible assets Intangible assets are recognised if it is probable that the future economic benefits that are attributable to the asset will flow to the Group and the cost of the asset can be measured reliably. Intangible assets are initially recognised at cost and subsequently measured to fair value. Any resultant gains are recognised in equity through the revaluation reserve. Any resultant losses are recognised directly in the income statement unless there has been previous gains on that asset which have been taken through the revaluation reserve, in which case these are cleared before the balance is taken to the income statement. Investment in subsidiaries Investments in subsidiaries are initially recognised and subsequently carried at cost in the Companys financial statements less, where appropriate, provisions for impairment. Financial instruments Financial assets and financial liabilities are recognised in the Groups balance sheet when the Group becomes a party to the contractual provisions of the instrument. The Group offsets financial assets and financial liabilities if the Group has a legally enforceable right to set off the recognised amounts and interests and intends to settle on a net basis. Financial assets The Groups financial assets fall into the categories below, with the allocation depending to an extent on the purpose for which the asset was acquired. Although the Group uses derivative financial instruments in economic hedges of currency, it does not hedge account for these transactions. The Group has not classified any of its financial assets as held to maturity. Unless otherwise indicated, the carrying amounts of the Groups financial assets are a reasonable approximation of their fair values. a) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise through deposits on new acquisitions and also incorporate other types of contractual monetary assets. They are included in current assets, except for maturities greater than twelve months after the balance sheet date which are classified as non-current assets. Trade and other receivables are measured at initial recognition at fair value and are subsequently measured at amortised cost using the effective interest rate method. The effect of discounting on these financial instruments is not considered to be material. Impairment provisions are recognised when there is objective evidence (such as significant financial difficulties on the part of the counterparty or default or significant delay in payment) that the Group will be unable to collect all of the amounts due under the terms receivable, the amount of such a provision being the difference between the net carrying amount and the present value of the future expected cash flows associated with the impaired receivable. For trade receivables, such impairments directly reduce the carrying amount of the impaired asset and are recognised against the relevant income category in the income statement. b) Cash and cash equivalents Cash and cash equivalents are carried at cost and comprise cash in hand and demand deposits, and other short-term highly-liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. c) Available-for-sale investments All quoted investments have been designated as available-for-sale. Available-for-sale investments are initially recognised on the date of purchase at cost being the fair value of purchase consideration paid plus any incremental transaction costs incurred as part of the purchase. They are subsequently adjusted to fair value with any unrealised gains or losses being recognised in equity, through the statement of changes in equity. Realised gains and losses on sale of quoted investments are recognised in the income statement. d) Fair value through profit or loss This category comprises only forward foreign currency contracts. The fair value of forward exchange contracts is based on their listed market price, if available. If a listed market price is not available, then fair value is estimated by discounting the difference between the contractual forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate (based on government bonds). Forward currency contracts are recorded as an asset and liability at the forward contract rate. The asset or liability is subsequently measured to fair value with the resulting gain or loss being recognised in the income statement, as part of foreign exchange gains/losses. e) De-recognition of financial assets A financial asset (in whole or in part) is de-recognised either: when the Group has transferred substantially all the risks and rewards of ownership; or when the Group has transferred substantially all the risks and rewards of ownership and when it no longer has control over the asset or a portion of the asset; or when the contractual right to receive cash flow from the asset has expired.
27

3 Significant accounting policies continued Financial liabilities a) Financial liabilities at amortised cost Trade payables and other short-term monetary liabilities are initially recognised at fair value and subsequently carried at amortised cost using the effective interest rate method. The effect of discounting on these financial instruments is not considered to be material. b) De-recognition of financial liabilities A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled or expired. c) Stated capital Financial instruments issued by the Group are treated as equity only to the extent that they do not meet the definition of a financial liability. The Companys ordinary shares are classified as equity instruments. For the purposes of the disclosures given in note 29 the Group considers all its stated capital and all other reserves as equity. The Company is not subject to any externally imposed capital requirements. d) Effective interest method The effective interest rate method is a method of calculating the amortised cost of a financial asset or liability and of allocating interest income and expense over relevant periods. The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments (including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial asset or liability or where appropriate, a shorter period. Dividends Dividends are recognised as a liability in the Groups financial statements in the period in which it becomes an obligation of the Company. 4 Significant accounting judgements and key sources of estimation uncertainty The Group makes estimates and assumptions concerning the future. The resulting accounting estimate will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Valuation of investment property and plantations The Group normally uses the valuation performed by its independent valuers as the fair value of its property and plantations. The valuation is based on assumptions. The valuers also make reference to market evidence of transaction prices for similar transactions (refer to note 19). Valuation of buildings The Group normally uses the valuation performed by its independent valuers as the fair value of its buildings. The valuation is based on assumptions. The valuers also make reference to market evidence of transaction prices for similar transactions (refer to note 20). Income and deferred taxes The Group is subject to income and capital gains taxes in numerous jurisdictions. Significant judgement is required in determining the total provision for income and deferred taxes. There are many transactions and calculations for which the ultimate tax determination and timing of payment are uncertain. The Group recognises liabilities for anticipated tax issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded such differences will impact the income and deferred tax provisions in the period in which the determination is made. Fair value of forward exchange currency contracts The Group estimates fair values of derivative contracts by reference to current market conditions compared to the terms of contracts using the results of an appraisal process carried out by the counterparty. Valuation of intangible asset The water licence has initially been recognised at purchase cost and is revalued to a value calculated by URS Australia Pty Ltd, an external valuer. These calculations are based on assumptions (refer to note 21).
28
5 Segmental information The Group operates in five distinctly separate geographical locations, with timberlands located in New South Wales (Australia), Texas (United States), north-western Florida and south-western Georgia (United States), Hawaii and Brazil.
2009 Jersey Australia United States Hawaii Brazil
Total assets Total liabilities Segment revenue Segment gross profit Increase in fair value of investment property and plantations Forestry expenses
19,046,838 185,600
Jersey
6,215,684 419,887 222,996 222,996 1,764,644 211,157

Australia
55,328,992 2,892,178 649,854 107,401 527,162 663,523

United States
10,370,745 648,341 30 30 466,543 291,741

Hawaii
15,533,573 353,794 (22,539) 502,079

Brazil
2008
Total assets Total liabilities Segment revenue Segment gross profit Increase in fair value of investment property and plantations Forestry expenses
84,744,721 149,857
4,966,789 145,909 253,152 (1,944,965) 112,099
15,743,240 1,954,658 446,676 229,810 4,807,285 3,313
3,106,834 141,515 115,878 2,959
The Group owns nine distinct parcels of land across four main investment strategies. The first strategy is a hybrid timber/environmental market focused investment in New South Wales, Australia, called Tarrangower. For this investment the Group owns approximately 21,163 acres in Ashford, New South Wales, Australia. This land was previously being used for cattle grazing and is now being planted with high-value commercial and non-commercial species with a view to longer-term revenue from plantations and short-term revenue from carbon credits. In addition to this, the Group has managed to secure a grant from the local Catchments Management Authority for biodiversity conservation and salinity control services provided by Tarrangower as a timber and carbon estate. The second strategy consists of buying established plantations in the southern United States. Established plantations with a balanced age class distribution are suitable for long and short-term sustainable yield. Marketable products include sawtimber and pulp, which can be sold into healthy forest product markets that exist in this geography. These properties also generate revenue from hunting leases. The Group owns 21,853 acres of land in Texas and another 29,900 acres of land spread across north-western Florida and south-western Georgia dedicated to this strategy. The third investment strategy involves the development of fast growth eucalyptus plantations to serve either export log markets in Asia or developing log markets for veneer or bio-energy in Hawaii. The Group has a leasehold interest in two plantations on the Big Island of Hawaii dedicated to this strategy. Pahala consists of 3,700 acres and Pinnacle is approximately another 4,500 acres of maturing eucalyptus trees. The Group has a fourth investment strategy of converting bare land to eucalyptus plantation for conversion to charcoal to serve pig iron markets or for emerging pulp and paper markets in Brazil. The Group owns one property in Tocantins, Brazil of approximately 25,700 acres and three properties in Minas Gerais, Brazil totalling 29,300 acres dedicated to this strategy. It is anticipated that the eucalyptus will be grown on a rotation length of seven years.
29

6 Revenue
Group 2009 2008
Sales harvested timber Sales right of way Lease income Grant income
526,880 182,760 163,240 872,880
291,227 106,012 105,876 196,713 699,828
The grant income was received from Border Rivers-Gwydir Catchment Management Authority (an Australian Government Authority) on signature of a Property Vegetation Plan (PVP) in connection with the Tarrangower property. The PVP covers conservation management, regeneration of the area, natural revegetation and plantation and allows for income receipts of up to a total of AU$960,000 (471,050) on certification of certain milestones having been achieved by the landholder. The PVP is for a term of 15 years and is governed by the laws of New South Wales. 7 Administrative expenses
Group 2009 Company 2009 Group 2008 Company 2008
Investment Managers fees Directors fees Auditors fees Other professional fees Administration of subsidiaries
1,064,857 115,000 52,889 561,411 364,716 2,158,873
1,064,857 115,000 52,889 561,411 1,794,157
1,207,676 143,041 38,000 1,191,495 73,810 2,654,022
1,207,676 143,041 38,000 1,191,495 2,580,212
Administration of subsidiaries include statutory fees, accounting fees and administrative expenses in regards to asset holding subsidiaries. 8 Finance income
Interest from subsidiary undertakings Bank interest Bond interest
1,608,070 344,667 1,952,737
1,442,584 344,667 1,787,251
5,344,454 315,251 5,659,705
159,632 5,316,177 315,251 5,791,060
The classification of finance income per financial asset class is listed in notes 9 and 13. 9 Net gains on loans and receivables
Interest from subsidiary undertakings Bank interest received
1,608,070 1,608,070
1,442,584 1,442,584
5,344,454 5,344,454
159,632 5,316,177 5,475,809
No impairment was recognised on loans and receivables.
30
10 Finance costs
Group 2009
Company 2009
Group 2008
Company 2008
Bank interest
2,827
70
11 Net gains and losses on financial assets and liabilities at fair value through profit and loss
Net change in unrealised appreciation on financial assets held at fair value though profit or loss: Forward exchange currency contracts 356,895 356,895 43,106 43,106
12 Net gains and losses on available-for-sale financial assets and liabilities

Gain/(loss) on bond recognised directly in equity Gain/(loss) on bond recognised in income statement
17,650 25,150 42,800
17,650 25,150 42,800
(17,650) (30,035) (47,685)
(17,650) (30,035) (47,685)
13 Total interest income and total interest expense on financial assets and financial liabilities not at fair value through profit and loss
Group 2009 Company 2009 Group 2008
Company 2008
Interest from subsidiary undertakings Bank interest received Bond interest
1,608,070 344,667 1,952,737
1,442,584 344,667 1,787,251
5,344,454 315,251 5,659,705
159,632 5,316,177 315,251 5,791,060
14 Taxation Taxation on profit on ordinary activities Company The Company was exempt from taxation up to 31 December 2007 under the provisions of the Income Tax (Jersey) Law 1961. This law was amended for assessment periods starting 1 January 2008 under Income Tax (Amendment 28) (Jersey) Law 2007. The Company will no longer be exempt from tax, it will be taxed at a corporate rate of 0%. Group The Groups tax expenses for the year/period comprises:
Group 2009 2008
Deferred taxation Australia at 30% Brazil at 33.29% United States at 15% 35%* 743,424 50,944 358,777 1,153,145
* Marginal corporate income taxes in the United States vary between 15% and 39% depending on the size of the profits.
(495,542) 1,791,527 1,295,985
31

14 Taxation continued Taxation on profit on ordinary activities continued Group continued
Group 2009 2008
Tax expense reconciliation: (Loss)/profit for the year/period Less: income non-taxable Add: expenditure non-taxable Add: deferred tax assets not provided Less: utilising tax assets not provided in 2008 Taxable profit for the year/period (16,695,441) (2,003,359) 20,280,341 2,163,091 (50,106) 3,694,526 2,567,630 (5,791,060) 6,224,027 475,404 3,476,001
At the balance sheet date the Group has unused tax losses. No deferred tax asset has been recognised in respect of these losses due to the unpredictability of future taxable profits. Tax losses not recognised in the financial statements
Group 2009 2008
Balance at the beginning of the year/period Prior year tax losses utilised Tax losses not provided Exchange movements Balance at the end of the year/period
475,404 (69,351) 2,120,411 220,391 2,746,855
475,404 475,404
The value of deferred tax assets not recognised in regard to the above mentioned losses amounted to 879,123 (2008: 144,436). Deferred taxation The following are the major deferred tax liabilities and assets recognised by the Group and movements thereon:
2009 Assets Liabilities Balance
At the beginning of the year Reclassification from assets to liabilities Restated at the beginning of the year Movements: Increase in fair value of investment property and plantations Revaluation on buildings, land, plant and equipment Accelerated tax depreciation Capitalised assets deducted Capitalised liabilities taxed Establishment expense written for tax Other Total movements for the year Foreign exchange effect Balance at the end of the year
630,005 (23,717) 606,288 115,775 (570,226) 66,693 1,097 (899) (387,560) 415 219,143
(1,920,265) 23,717 (1,896,548) (533,727) (55,801) (4,745) (206,075) 34,762 (765,586) (678,252) (3,340,386)
(1,290,260) (1,290,260) (417,952) (626,027) (4,745) (206,075) 66,693 1,097 33,863 (1,153,146) (677,837) (3,121,243)
32
14 Taxation continued Deferred taxation continued The following are the major deferred tax liabilities and assets recognised by the Group and movements thereon:
2008 Assets Liabilities Balance
Increase in fair value of investment property and plantations Accelerated tax depreciation Capitalised assets deducted Capitalised liabilities taxed Foreign exchange effect Balance at the end of the period 15 Dividend
Dividend reference period Shares Number
109,726 477,397 958 2,658 39,266 630,005
(1,884,183) (833) (1,708) (33,541) (1,920,265)
(1,774,457) 476,564 958 950 5,725 (1,290,260)
Dividend per share
Paid
Date
2008
104,350,000
0.03
3,130,500
30 September 2008
16 Basic and diluted (loss)/earnings per share The calculation of the basic and diluted earnings per share is based on the following data:
Group 2009 2008
(Loss)/profit for the purposes of basic and diluted earnings per share being net profit for the year/period as per income statement Number of ordinary shares Number of ordinary shares for basic and diluted earnings per share: Weighted average number of ordinary shares for the purposes of basic and diluted earnings per share Basic and diluted (loss)/earnings per share 17 Net asset value
(17,848,586)
1,271,645
104,350,000 (17.10) pence
104,350,000 1.22 pence
Group 2009 2008
Total assets Total liabilities Net asset value Number of shares in issue Net asset value per share
106,495,832 4,499,800 101,996,032 104,350,000 0.98
108,561,584 2,391,939 106,169,645 104,350,000 1.02
33

18 Investment in subsidiaries A list of the significant investments in direct and indirect subsidiaries, including the name, country of incorporation and the proportion of ownership interest is given below:
Name of subsidiary undertaking % of voting rights Country of incorporation Principal activity
Cambium Tarrangower Holdings Limited Cambium Australia Trust Cambium Pahala Holdings Limited Cambium Pahala Hungary Holdings Kft Cambium Hawaii Hungary Holdings Kft Cambium Pahala Inc. (Delaware) Cambium Pinnacle Holdings Limited Cambium Pinnacle Hungary Holdings Kft Cambium Pinnacle Inc. (Delaware) Cambium Holdings Limited Cambium Hungary Holdings Kft Corrigan Holdings Limited Corrigan Hungary Holdings Kft Cambium Corrigan Limited Partnership Cambium Minas Holdings Limited Cambium MG Holdings Limited Cambium MG Investments Florestais Ltda 3R Tocantins Investments Florestais Ltda Cambium New Zealand Holdings Limited Cambium Uruguay Holdings Limited Cambium South Atlantic Holdings Limited Cambium South Atlantic Hungary Holdings Kft Cambium South Atlantic Inc. (Delaware)
100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Jersey Australia British Virgin Islands Hungary Hungary Delaware, United States British Virgin Islands Hungary Delaware, United States British Virgin Islands Hungary British Virgin Islands Hungary Texas, United States British Virgin Islands British Virgin Islands Brazil Brazil Jersey Jersey British Virgin Islands Hungary Delaware, United States
Holding company Forestry Holding company Holding company Holding company Forestry Holding company Holding company Forestry Holding company Holding company Holding company Holding company Forestry Holding company Holding company Forestry Forestry Forestry Holding company Holding company Holding company Forestry
Company 2009 2008
Cambium Tarrangower Holdings Limited Cambium Pahala Holdings Limited Cambium Pinnacle Holdings Limited Cambium Holdings Limited Corrigan Holdings Limited Cambium Minas Holdings Limited Cambium MG Holdings Limited Cambium New Zealand Holdings Limited Cambium South Atlantic Holdings Limited Cambium Uruguay Holdings Limited
1,191,567 49 49 51 51 51 51 825,886 51 2 2,017,808
1,191,567 49 49 51 51 51 49 1,191,867
34
19 Investment property and plantations

Merchantable timber
Group Pre-merchantable timber
2009
Land
Total
Fair value opening balance at 1 May 2008 Land acquired in the year Plantations acquired in the year Acquisition costs capitalised Harvested timber Transfer to pre-merchantable timber Transfer to merchantable timber
5,893,291 5,590,158 27,786 (542,453) 630,464 11,599,246
6,318,343 6,114,464 1,003,829 115,823 (630,464) 12,921,995 1,001,729 1,001,729 2,785,139 16,708,863
Group
11,596,286 31,038,908 566,062 (115,823) 43,085,433 1,710,682 1,710,682 5,676,690 50,472,805
23,807,920 31,038,908 11,704,622 1,597,677 (542,453) 67,606,674 2,448,128 499,742 (212,060) 2,735,810 11,085,882 81,428,366
Fair value adjustments on price (losses)/gains on land and plantation Fair value adjustments on growth gains on land and plantation Fire, hazardous weather and other damages (impairment) Increase in fair value of investment property and plantations Foreign exchange effect Fair value as at 30 April 2009
(264,283) 499,742 (212,060) 23,399 2,624,053 14,246,698
2008
Merchantable timber
Pre-merchantable timber
Land
Total
Land acquired in the period Plantations acquired in the period Acquisition costs capitalised Gains on growth Harvested timber Transfer to merchantable timber Transfer to pre-merchantable timber
(437,588) 6,207,140 5,769,552
537,978 5,660,615 6,198,593 119,750 6,318,343
6,940,340 12,748,194 559,827 (6,207,140) (5,660,615) 8,380,606 1,270,859 1,591,461 2,862,320 353,360 11,596,286
6,940,340 12,748,194 559,827 537,978 (437,588) 20,348,751 1,270,859 1,591,461 2,862,320 596,849 23,807,920
Fair value adjustments on plantations Fair value adjustments on land Increase in fair value of investment property and plantations Foreign exchange effect Fair value as at 30 April 2008 No harvested timber was held at the year end (2008: nil).
123,739 5,893,291
The land and plantations are carried at their fair value as at 30 April 2009, as measured by external independent valuers URS Australia Pty Ltd (URS), Day Forest Management and Appraisal Inc., Holtz Consultoria LTDA, James W. Sewall Company and Sandro Al-Alam Elias. Each of the valuers use similar methodologies though this can vary depending on the type of investment and the local practices. The appraisals for the Corrigan and South Atlantic States properties in the United States were undertaken by Day Forest Management and Appraisal Inc. and James W. Sewall Company respectively. These appraisals conform to Uniform Standards of Professional Appraisal Practice in the United States. For these valuations three valuation approaches were considered the cost approach, the sales comparison approach and the income approach. Each approach selected as being applicable and necessary to produce credible results is believed to have been applied appropriately.
35

19 Investment property and plantations continued The properties in Hawaii, Pahala and Pinnacle, are leasehold interests without any ownership of the underlying land. These investments were valued by URS in accordance with IFRS using a discounted cash flow approach. The discount rate, of 8% for both plantations, was established using the capital asset pricing model and were applied to future cash flows from the harvest of trees. About 374.5 hectares of the Pahala plantation was affected by volcanic vog and this reduced the value of the plantation by 4%. URS additionally valued the Tarrangower investment in Australia consistent with the local equivalent of IFRS. There is little comparable transaction evidence to determine the value of land for forestry purposes in the region. Therefore, URS has applied a discounted cash flow analysis to determine the value of the land for forestry purposes. A discount rate of 8.2% was derived using a capital asset pricing model and applied to anticipated cash flows. URS then engaged the licensed land appraiser Steven Broun and Associates to value the land that is not used for forestry purposes on Tarrangower South. The 3R Tocantins property in Brazil was valued by Holtz Consultoria LTDA. The method applied for the bare-land appraisal was the sales comparison approach. The analysis considered the bare-land price from comparable transactions, soil quality, topography of the land, access and distance from cities, and the proportion of the property which could be used for cultivation. The three properties in Minas Gerais were valued by Sandro Al-Alam Elias by first determining the highest and best use of the subject property. This analysis helps the appraiser identify comparable properties and identify the use that would produce the maximum income to the property. After determining the best use of the subject property, the appraiser analysed the value of the property using the cost approach, the sales comparison approach and the income capitalisation approach. 20 Buildings, plant and equipment
Furniture and fittings Group Motor vehicles
2009
Buildings
Improvements
Total
Cost Accumulated depreciation Balance as at 30 April 2008 Depreciation and fair value movements Assets acquired in year Revaluation Depreciation for the year Foreign exchange effect
351,493 351,493
97,692 97,692
12,815 (880) 11,935
462,000 (880) 461,120
690 (35) 16 671
(5,518) 12,163 6,645
33,558 (5,802) 5,154 32,910
(1,448) 329 (1,119)
34,248 (11,320) (1,483) 17,662 39,107
Carrying value Balance as at 30 April 2009 671 358,138 130,602 10,816 500,227
36
20 Buildings, plant and equipment continued

Furniture and fittings
Group Motor vehicles
2008
Buildings
Improvements
Total
Cost Assets acquired in period Cost as at 30 April 2008 Depreciation and fair value movements Revaluation Depreciation for the period Foreign exchange effect Carrying value Balance as at 30 April 2008 351,493 97,692 11,935 461,120 (41,528) 27,135 (14,393) (1,749) 7,542 5,793 (880) 921 41 (43,277) (880) 35,598 (8,559) 365,886 365,886 91,899 91,899 11,894 11,894 469,679 469,679
The buildings and improvements are carried at their fair value as at 30 April 2009, as measured by external independent valuers URS Australia Pty Ltd and Day Forest Management and Appraisal Inc. (in conjunction with the external valuation of plantations). The valuations have been prepared using techniques approved under IFRS. The motor vehicles and furniture and fittings are carried at cost less accumulated depreciation. 21 Intangible assets
Group 2009 2008
Valuation/cost water licence Revaluation Foreign exchange effect
123,164 (4,598) 4,084 122,650
43,714 69,942 9,508 123,164
The Tarrangower property has approximately 4 kilometres of frontage to the Severn River and has attached to it a water licence administered by the Department of Natural Resources in Australia (DNR). The 105 mega litre surface irrigation licence (Number 90SL100620) has rights attached to it allowing an annual allocation of 48 mega litres A class and 57 mega litres B class from Pindari Dam which is located 11 kilometres further up stream. The licence is renewable on a five-yearly basis and at a small administration cost to the Group. The licence is measured at fair value as at 30 April 2009, as measured by external independent valuers URS Australia Pty Ltd. The valuation has been made with reference to market values of water prices trading currently in this area. The price, as valued per URS Australia Pty Ltd, was approximately AUD$ 2,380 per mega litre.
37

22 Categories of financial assets and financial liabilities
Group 2009
Company 2009
Group 2008
Company 2008
Current financial assets Financial assets through profit or loss Forward exchange currency contracts Loans and receivables Trade and other receivables Cash and cash equivalents Available-for-sale investments Available-for-sale investments Non-current financial assets Loans and receivables Loans to subsidiary undertakings Current financial liabilities Financial liabilities measured at amortised cost Trade and other payables 23 Trade and other receivables 1,159,414 1,016,682 471,674 174,823 77,686,122 20,600,477 8,964,000 8,964,000 142,136 23,689,389 161,337 18,673,009 742,994 73,757,639 575,765 72,928,781 356,895 356,895 43,106 43,106
Group 2009
Company 2009
Group 2008
Company 2008
Accrued interest on bonds Bank interest receivable Goods and Services Tax receivable Inter-company receivables Trade receivables Deposit paid Deferred costs Prepaid expenses
937 24,685 116,514 37,026 179,162
937 159,825 575 15,421 176,758
53,565 141,591 8,985 199,940 251,572 87,341 31,636 774,630
53,565 141,591 41,696 251,572 87,341 23,752 599,517
Deposit paid was on the Pinnacle forest and deferred costs consisted of prospective investment in forests.
38
24 Loans to subsidiary undertakings

2009 US$
Company 2009 2008 US$ 2008
Cambium Holdings Limited Corrigan Holdings Limited Cambium South Atlantic Holdings Limited Cambium Pinnacle Holdings Limited Cambium Pahala Holdings Limited
13,812,037 13,620,129 44,789,645 8,150,366 8,313,987 88,686,164

AU$
9,307,442 9,208,987 30,278,518 5,489,783 4,089,390 58,374,120
13,734,808 13,589,129 5,816,881 33,140,818

AU$
6,967,033 6,893,136 2,950,635 16,810,804
Cambium Tarrangower Holdings Limited
9,257,260
NZ$
4,541,613
8,000,000
NZ$
3,789,673
Cambium New Zealand Holdings Limited
154,180
60,222
Cambium MG Holdings Limited Cambium Minas Holdings Limited
14,408,635 301,532 14,710,167 77,686,122
20,600,477
All inter-company loans are interest free and have no fixed terms of repayment. The Directors do not anticipate that payment on these loans will be demanded during the next twelve months. 25 Available-for-sale investments
Company 2009 Group 2009 Company 2008 Group 2008
UK Treasury stock 4% 7 March 2009
8,964,000
8,964,000
The fair value of the UK Treasury stock was determined with standard terms and conditions and traded on the London Stock Exchange determined with reference to quoted market prices.
39

26 Forward exchange currency contracts
Group 2009
Company 2009
Group 2008
Company 2008
Forward foreign currency contracts: at forward rate at market rate Gain 86,567,884 (86,210,989) 356,895 86,567,884 (86,210,989) 356,895 26,690,135 (26,647,029) 43,106 26,690,135 (26,647,029) 43,106
The above gains on forward exchange currency contracts represents the total net unrealised gain. Forward exchange currency contracts are used to hedge against foreign exchange exposure arising from investing in foreign operations and foreign currency transactions. The Group incurred a loss of 17,898,586 in the year when the foreign exchange currency contracts lapsed. It is not the policy of the Group to perform hedge accounting under the terms of IAS 39 and therefore the effect of changes in exchange rates for foreign operations are recognised directly in equity. The gain on exchange differences recognised directly into equity for the year amounted to 16,792,421. As at 30 April 2009 there were six forward foreign currency contracts in place. Forward exchange currency contracts held by the Company and the Group at their forward exchange rates are listed below. All of the contracts have a strike date of 30 April 2010.
2009 US$ 2008 US$
Forward exchange currency contracts for US Dollar
127,000,000
AU$
86,407,311
42,250,000
AU$
21,870,721
Forward exchange currency contracts for Australian Dollar
11,000,000
BRL
5,195,296
10,500,000
BRL
4,819,414
Forward exchange currency contracts for Brazilian Real
30,000,000
8,579,518
US$
US$
Forward exchange currency contracts for Pounds Sterling 27 Cash and cash equivalents
13,614,241
20,000,000
Group 2009
Company 2009
Group 2008
Company 2008
Cash held at bank Cash held at broker
14,939,567 8,749,822 23,689,389
9,923,187 8,749,822 18,673,009
73,737,574 20,065 73,757,639
72,908,716 20,065 72,928,781
Cash at broker is held with MF Global (United Kingdom) Limited and an amount of 5,685,100 is held as security for the forward exchange contracts. The Company has a forward exchange currency facility with UBS AG to the amount of 1,800,000. The term date of this facility is 25 December 2050, however this facility will be reviewed by UBS on 5 April 2012. An amount of 635,715 is held on deposit with UBS AG as security for this facility. Included in cash at bank was an amount of BRL 7,381,440 (approximately 2,279,590) kept on escrow in regards to the acquisition of the Agua Santa property. The money will clear the account once the deeds are released.
40
28 Trade and other payables
Group 2009
Company 2009
Group 2008
Company 2008
Accruals Inter-company payables Trade creditors Retentions held Advances held
207,275 288,158 298,858 365,123 1,159,414
832,750 183,932 1,016,682
187,068 70,444 214,162 471,674
174,823 174,823
3R Tocantins Florestais Ltda. retained approximately 6% of the purchase price of the 3R Tocantins property for a maximum of five years, to support any hidden liability associated with the previous ownership. This amount is in the process of being released in exchange of a land guarantee of superior value. Advances held comprises of timber sales received in advance. 29 Stated capital
Balance at the beginning of the year/period Net proceeds from issue of shares Less: reduction in share capital
2,000,000 2,000,000
2,000,000 2,000,000
104,350,000 (102,350,000) 2,000,000
104,350,000 (102,350,000) 2,000,000
The total authorised share capital of the Company is 250 million ordinary shares of no par value with 104,350,000 shares issued at 100 pence each on initial placement. Ordinary shares carry no automatic rights to fixed income but the Company may declare dividends from time to time to which ordinary shareholders are entitled. Each share is entitled to one vote at meetings of the Company. On 22 February 2007 a special resolution was passed by the Company to reduce the stated capital account from 104,350,000 to 2,000,000. Approval was sought from the Royal Court of Jersey and was granted on 29 June 2007. The balance of 102,350,000 was transferred to a distributable reserve on that date. 30 Reserves The movements in the reserves for the Group and the Company are shown on pages 16 and 20 respectively. Translation reserve The translation reserve contains exchange differences arising on consolidation of the Groups foreign operations. Revaluation reserve The revaluation reserve arises from the revaluation on available-for-sale investments, intangible assets and property, plant and equipment. Distributable reserve The Company reduced its stated capital account and a balance of 102,350,000 was transferred to distributable reserves.
41

31 Operating leases The maturity of prepaid operating leases is as follows:

Group 2009 2008
Between one and two years Between two and five years Over five years
233,222 245,074 74,884 553,180
83,380 83,380
Leases are on the Hawaiian plantations. 32 Financial instruments risk exposure and management In common with other businesses, the Group is exposed to risks that arise from use of financial instruments. The notes below describe the Groups objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements. Principal financial instruments The principal financial instruments used by the Group and Company, from which financial instrument risk arises, are as follows: amounts receivable from subsidiary undertakings; available-for-sale investments; forward exchange currency contracts; cash and cash equivalents; trade and other payables; and trade and other receivables. The Board of Directors and Investment Manager are responsible for overseeing the measurement and control of all aspects of risk management and hold regular meetings in order to do so. Various risk management models are in place which help to identify and monitor key risks both at individual investment level and at a group level. The risk management policies apply equally to the Group and the Company. Further details regarding these policies are set out below and overleaf. Credit risk Credit risk is the risk that the counterparty to a financial instrument will fail to meet obligations, causing a loss to the Group. a) Group Cash and cash equivalents represent the majority of the Groups financial assets. The credit risk associated with the holding of cash and cash equivalents is managed under the Groups cash management policy. The cash management policy states that the Group must have a minimum of five bankers with each banker permitted to hold an approximate maximum of 20,000,000 so as to spread the risk of default. The cash management policy will be reviewed on an annual basis by the Board of Directors and the Investment Manager. b) Company The Companys credit risk mainly arises from cash and cash equivalents and amounts receivable from subsidiaries and SPVs. The Company follows the same Group policy with regards to diversification of banking arrangements. Amounts receivable from subsidiaries are mainly long-term in nature and the loans are monitored on a regular basis.
42
32 Financial instruments risk exposure and management continued Credit risk continued The table below shows the maximum exposure to risk of the major counterparties at the balance sheet date:
2009 Counterparty Credit rating agency Rating Carrying amount
Investec Bank (Channel Islands) Limited AIB Bank (Channel Islands) Limited Royal Bank of Scotland International PLC UBS AG MF Global (United Kingdom) Limited Deutsche Bank AG BNP Paribas National Australia Bank Limited Regions Bank Bank of America Corporation Citibank
Fitch Fitch Fitch Fitch Fitch S&P S&P S&P S&P S&P S&P
F3 F1+ F1+ F1+ F2 AAA AA A 1+ AA1 A1
1,420,787 1,000,000 720,338 3,111,098 8,749,822 1,667,204 2,003,761 403,381 4,291,935 313,735 343,075
3 months 1 year
< 1 month
1 3 months
Maturities of these financial assets Investec Bank (Channel Islands) Limited AIB Bank (Channel Islands) Limited Royal Bank of Scotland International PLC MF Global (United Kingdom) Limited UBS AG Deutsche Bank AG BNP Paribas National Australia Bank Limited Regions Bank Bank of America Corporation Citibank 1,420,787 1,000,000 720,338 3,064,722 3,111,098 1,667,204 2,003,761 403,381 4,291,935 313,735 343,075 5,685,100
43

32 Financial instruments risk exposure and management continued Credit risk continued
2008 Counterparty
Credit rating agency
Rating
Carrying amount
Investec Bank (Channel Islands) Limited AIB Bank (Channel Islands) Limited Bank of Scotland International PLC Royal Bank of Scotland International PLC UBS AG MF Global (United Kingdom) Limited New South Wales Treasury Corporation National Australia Bank Limited Regions Bank
Fitch Fitch Fitch Fitch Fitch Fitch S&P S&P S&P
F2 F1+ F1+ F1+ F1+ F2 A 1+ A 1+ A 1+

< 1 month
8,107,779 20,736,996 17,715,974 21,636,894 4,854,865 20,065 198,357 388,961 409,153

1 3 months
Maturities of these financial assets Investec Bank (Channel Islands) Limited AIB Bank (Channel Islands) Limited Bank of Scotland International PLC Royal Bank of Scotland International PLC UBS AG MF Global (United Kingdom) Limited New South Wales Treasury Corporation National Australia Bank Limited Regions Bank 3,330,464 15,961,174 13,148,126 16,861,451 82,470 20,065 388,961 409,153 4,777,315 4,775,822 4,567,848 4,775,443 4,772,395 198,357
Liquidity risk Liquidity risk is the risk that the Group will not be able to meet financial liability obligations as they fall due. The Groups liquidity risk is managed by the Investment Manager in accordance with policies and procedures established by the Board. Foreign exchange contracts have been put in place so as to manage the potential foreign exchange exposure arising from investing in assets in foreign jurisdictions. Under the Groups hedging policy, hedging will only be employed once timber assets are acquired. Therefore all hedging liabilities are matched with an associated asset so as to keep risk to a minimum. The hedging policy is reviewed quarterly by the Board.
44
32 Financial instruments risk exposure and management continued Liquidity risk continued The table below analyses the Groups financial liabilities and derivative assets and liabilities, which will be settled on an net basis, into relevant maturity groupings based on the remaining period at the balance sheet to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within twelve months equal their carrying balances as the impact of discounting are not significant.
2009 < 1 month 1 3 months 3 months 1 year
Contract maturities of financial liabilities Forward exchange currency contracts Trade and other payables (860,556) (860,556) (113,343,899) (298,858) (113,642,757)
3 months 1 year
2008
< 1 month
1 3 months
Contract maturities of financial liabilities Forward exchange currency contracts Trade and other payables (471,674) (471,674) (26,647,029) (26,647,029)
The forward exchange currency contracts have a strike date of 30 April 2010. The Company has a forward exchange currency facility with UBS AG to the amount of 1,800,000. The term date of this facility is 25 December 2050, however this facility will be reviewed by UBS on 5 April 2012. An amount of 635,715 is held on deposit with UBS AG held as security for this facility. Market risk Foreign exchange currency risk The Group is exposed to currency risk through investing in assets held in currencies other than the functional currency. As a result, the Group is exposed to the risk that the exchange rate of its currency relative to other foreign currencies may fluctuate and have an adverse effect on the Group performance. The Group operates in various parts of the world and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to Pounds Sterling, Australian Dollar, Brazilian Real and US Dollar. Foreign exchange risk arises from future commercial transactions, recognised monetary assets and liabilities and net investments in foreign operations. The Group safeguards foreign currency operations against adverse movements between Pounds Sterling, Australian Dollar, Brazilian Real and US Dollar through the use of forward foreign currency contracts. The forward foreign currency contracts are established and monitored in accordance with the Groups hedging policy. At reporting date the Group had the following currency exposure in regards to foreign operations:
Australian Dollar Brazilian Real US Dollar Hungarian Forint
5,795,797 15,179,779 62,159,218 42,308
4,538,051 14,532,794 58,114,873
4,941,376 4,904,164 23,865
3,789,673 16,810,804
45

32 Financial instruments risk exposure and management continued Market risk continued Foreign exchange currency risk continued The table below summarises the Groups and Companys exposure to foreign currency risk at 30 April. The Groups and Companys monetary assets and monetary liabilities at carrying amounts are included in the table, categorised by the currency at their carrying amount and the underlying principal amount of the forward exchange contracts.
Monetary assets Monetary liabilities Forward exchange contracts Net exposure
2009
450,127 3,505,736 1,224,128 64,801
41,039 301,563 631,213 22,493
5,296,507 8,597,205 72,317,277

Forward exchange contracts
(4,887,419) (5,393,032) (71,724,362) 42,308
2008
Monetary assets
Monetary liabilities
Net exposure
Australian Dollar US Dollar Hungarian Forint
599,808 422,091 23,868
34,688 271,095 11,762
4,863,058 21,783,971
(4,297,938) (21,632,975) 12,106
The table above only summarises exposure to financial assets and financial liabilities. The Group uses foreign currency exchange contracts to minimise exposure to foreign currency fluctuations in its foreign operations. The table below summarises the Groups and Companys exposure to foreign currency due to all foreign operations which include all assets and liabilities. The exposure is measure in the net asset value exposed to specific currencies. These are shown only for hedged operations.
Net asset value Forward exchange contracts Net exposure
Group 2009
Australian Dollar Brazilian Real US Dollar
5,795,797 15,179,779 62,159,218

Net asset value
5,296,507 8,597,205 72,317,277

Forward exchange contracts
499,290 6,582,573 (10,158,059)
Group 2008
Net exposure
Australian Dollar US Dollar
4,941,376 4,904,164
4,863,058 21,783,971
(9,804,434) (26,688,135)
The Groups policy is, where possible, to allow Group entities to settle liabilities denominated in their functional currency with cash generated from their own operations in that currency.
46
32 Financial instruments risk exposure and management continued Market risk continued Foreign exchange currency risk continued Due to the significant falls in the markets over the period the sensitivity analysis has been increased to 15% from 5% last year. At 30 April 2009, had the Pound Sterling strengthened by 15% in relation to all currencies, with all other variables held constant, the NAV would have decreased by the amounts shown below:
(756,073) (1,979,971) (8,278,736) (5,518) (11,020,298)
(591,919) (7,580,236) (8,172,155)
(235,349) (890,295) (1,136) (1,126,780)
(180,461) (793,143) (973,604)
A 15% weakening of the Pound Sterling against the above currencies would have resulted in an equal but opposite effect on the net asset value, on the basis that all other variables remain constant. The sensitivity analyses above, both interest and exchange rates, are based on a change in an assumption while holding all other assumptions constant. In practice this is unlikely to occur and changes in some of the assumptions may be correlated, for example, change in interest rates and change in market values. Price risk Price risk is the risk that value of the instrument will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or currency risk), whether caused by factors specific to an individual investment, its issuer or all factors affecting all instruments traded in the market. The majority of the Groups financial instruments are carried at fair value with fair value changes recognised in the income statement or the statement of changes in equity, changes in market prices will directly affect these statements. Price risk is reviewed and managed by the Board on a quarterly basis. The available-for-sale investments are the only financial asset that exposed the Group to price risk. The Group disposed of this asset during the year and is no longer exposed to price risk on any of their financial assets and liabilities. Cash flow and fair value interest rate risk Interest rate risk arises in the Group predominantly from the holding of cash and cash equivalents. The Board has established a cash management policy to ensure the best return from the Groups bankers and to mitigate interest rate risk arising from the holding of cash. Cash is predominantly held on short-term deposit and the Board reviews interest rates on a quarterly basis. The Groups and Companys interest rate profile is shown in the table below: Interest rate profile as at 30 April 2009
Group % Company %
Weighted average interest rate Loans and receivables Non-interest bearing Cash and cash equivalents Variable Amounts receivable from subsidiaries Non-interest bearing Financial assets through profit and loss Foreign exchange contracts Fixed payable Fixed receivable Financial liabilities at amortised cost trade and payables Non-interest bearing 0.00% 1,159,414 0.00% 1,016,682 0.00% 0.00% (86,210,989) 86,567,884 0.00% 0.00% (86,210,989) 86,567,884 0.00% 0.00% 77,845,947 1.30% 23,689,389 0.30% 18,673,009 0.00% 179,162 0.00% 16,933
47

32 Financial instruments risk exposure and management continued Market risk continued Cash flow and fair value interest rate risk continued Interest rate profile as at 30 April 2008
Group %
Company %
Weighted average interest rate Loans and receivables Non-interest bearing Cash and cash equivalents Variable Amounts receivable from subsidiaries Non-interest bearing Financial assets through profit and loss Foreign exchange contracts Fixed payable Fixed receivable Available-for-sale investments Interest bearing Variable Financial liabilities at amortised cost trade and other payables Non-interest bearing 0.00% (471,674) 0.00% (174,823) 4.00% 8,964,000 4.00% 8,964,000 0.00% 0.00% (26,647,029) 26,690,135 0.00% 0.00% (26,647,029) 26,690,135 0.00% 0.00% 20,600,477 4.93% 73,757,639 5.38% 72,928,781 0.00% 774,630 0.00% 599,517
For the Group, an increase in 100 basis points in interest yields would result in a pre-tax profit of 16,080 (2008: 735,693). A decrease in 100 basis points in interest yields would result in a pre-tax loss for the year of 16,080 (2008: 735,693). For the Company, an increase in 100 basis points in interest yields would result in a pre-tax profit of 14,425 (2008: 727,404). A decrease in 100 basis points in interest yields would result in a pre-tax loss for the year of 14,425 (2008: 727,404). Capital risk management The Groups objectives when managing capital are to safeguard the Groups ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost to capital. In order to maintain or adjust the capital structure the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell net assets to reduce debt. In order to ensure that the Group will be able to continue as a going concern, management continuously monitors forecast and actual cash flows and matching the maturity profiles of assets and liabilities. The Group has no external borrowings.
48
33 Events after the balance sheet date The Company has acquired approximately 3,200 acres of mid-rotation radiata pine plantation on the south island of New Zealand, for approximately 2,255,000. The property is positioned to serve the high-growth log markets of Asia via the export market with harvest to begin in 2020. The property will be managed on an environmentally and socially sustainable manner and FSC certification will be sought. With this acquisition Cambium is fully invested in a portfolio diversified across geography, age class and species. Other than the above, the Company had no significant post balance sheet events. 34 Related party transactions Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions. CP Cogent Asset Management LP is the Investment Manager to the Company under the terms of the Investment Management Agreement and is thus considered a related party of the Company. During the year 1,064,857 (2008: 1,207,676) was paid to CP Cogent Asset Management LP in respect of management fees. Amounts of 38,244 were still due to CP Cogent as at 30 April 2009 (2008: nil). Transactions between the Company and its subsidiaries, which are related parties, have been disclosed in note 23 and 24. Colin McGrady is a Director of CP Cogent Asset Management LP, who acts as Investment Manager. He is also a Director of the Company and has waived his Directors fees for the year. The Directors of the Company received fees for their services and further details are provided in the Directors Report and note 7.
49
Notice of annual general meeting
NOTICE IS HEREBY GIVEN THAT an AGM of shareholders of Cambium Global Timberland Limited (the Company) will be held at 5 Castle Street, St Helier, Jersey JE2 3RT on 16 September 2009 at 10.00am for the purpose of considering and, if thought fit, passing the following resolutions: Ordinary business 1 To receive and adopt the Directors Report and the Financial Statements for the year ended 30 April 2009. 2 3 4 5 6 7 To re-appoint Donald Adamson as a Director of the Company in accordance with Article 19.03 of the Companys Articles of Association. To re-appoint Colin McGrady as a Director of the Company in accordance with Article 19.03 of the Companys Articles of Association. To approve the Board of Directors to pay a final dividend of 3 pence per share. To re-appoint KPMG Channel Islands Limited, as auditor of the Company. To authorise the Directors to fix the remuneration of the Companys auditor. To authorise that the Companys investment policy as set out below is approved and affirmed: The Companys investment policy is to invest principally in forestry assets or operations which are or can be managed on an environmentally and socially sustainable basis. The Company will seek out to gain value from certification of its forest management systems, from the commercial development of environmental products and services, and from the reduction of risk by community engagement and workforce development. Investments may be managed for timber production, environmental credit production or both. The Company will be a long-term investor in the countries and regions in which it invests and will therefore strive to ensure good community relations. The Company aims to establish effective policies and procedures to ensure all its investments make a positive contribution to the regions in which they are operating. The Company will seek out opportunities for enhanced environmental performance and will actively seek commercial opportunities in emerging environmental markets. The Manager believes such developments can play a role in enhanced conservation efforts for forests in a regional context and can provide new and diversified sources of revenue to investments. Investment strategies related to timber market segments, improved management, new opportunities in emerging environmental markets such as carbon credits, and reduction of project risk may be employed to increase total returns. Returns from timberland are influenced by three factors: (i) biological tree growth; (ii) timber price changes; and (iii) changes in the value of the underlying land asset. The Company aims to establish a portfolio comprising geographically diverse assets located both in mature markets and in developing markets where potentially higher returns may be generated but with commensurately higher risk. The Company will seek investments in North and South America and the Asia-Pacific region (including Australia and New Zealand), but may invest in other regions on an opportunistic basis, as determined by the Manager with the approval of the Board. The Company will aim to achieve a balance between generating income and producing superior total returns to investors by establishing an optimised portfolio of timberland properties and timberland related investments diversified by location, age class and species. Different age classes of tree will provide harvestable timber over time and diversification by region and species will provide exposure to different growth rates and different market segments. The Manager believes that this approach will maximise returns and help to control volatility and risk exposure. The Manager believes that it can build a diversified portfolio which will provide for a stable dividend and capital appreciation over time. Special business 8 To grant standing authority such that the Company be authorised generally and without conditions to make market purchases of its ordinary shares. That the Company be and is hereby generally and unconditionally authorised to make market purchases of fully paid shares in the capital of the Company (shares) pursuant to Article 57 of the Companies (Jersey) Law 1991 (the Law) and the Companys Articles of Association provided that: (i) (ii) (iii) the maximum number of shares authorised to be purchased is 14.99% of the total shares in issue as at the date of this resolution (rounded to the nearest whole number); the minimum price which may be paid for a share is 0.01; the maximum price which may be paid for a share is not more than 5% above the average of the middle market quotations of a share taken from the London Stock Exchange for the five business days immediately proceeding the date of the purchase (or such other amount as may be specified by the London Stock Exchange from time to time); the minimum and maximum prices specified in sub-paragraphs (ii) and (iii) of this resolution are in all cases exclusive of any expenses by the Company; the Company shall fund the payments of the purchases of shares in any manner permitted by the Law;
(iv) (v)
50
Special business continued 8 continued (vi) (vii) the Directors of the Company reasonably believe that the Company shall be able to meet the solvency tests prescribed by the Law although will require to consider and confirm that the relevant solvency tests are met when any purchase is effected; the authority hereby conferred shall expire on the earlier of (a) the date of the AGM of the Company to be held in 2010; and (b) 18 months from the date of the passing of this resolution, unless such authority is varied, revoked or renewed prior to such time by the Company in general meetings by special resolution; and
(viii) the Company may enter into a contract to purchase shares under the authority hereby conferred prior to the expiry of such authority which will or may be completed or executed wholly or partly after the expiry of such authority. By order of the Board
For and on behalf of Praxis Property Fund Services Limited Sub-Administrator and Delegate Company Secretary 29 July 2009
&
Investec Trust (Jersey) Limited Administrator and Company Secretary
Registered office 5 Castle Street St Helier Jersey JE2 3RT
Notes 1 Any shareholder entitled to attend and vote at the meeting is entitled to appoint one or more proxies to attend and vote instead of him. A proxy need not be a shareholder of the Company. 2 The form of proxy, together, if appropriate, with the power of attorney or other authority (if any) under which it is signed, must be deposited at the office of the Companys UK Transfer Agent, Capita Registrars Proxy Department, 34 Beckenham Road, Beckenham, Kent, England BR3 4TU, not later than 48 hours before the time appointed for holding the meeting. Return of a completed form of proxy will not preclude a shareholder from attending and voting personally at the meeting. The notice sets out the resolutions to be proposed at the meeting. The meeting will be chaired by a person nominated by the shareholders present in person or by proxy at the meeting. It is anticipated that the Chairman of the meeting will be Mr Martin Richardson, in his absence, Mr Donald Adamson. The quorum for a meeting of shareholders is two or more shareholders present in person or by proxy. If, within 30 minutes from the appointed time for the meeting, a quorum is not present, the meeting if convened by or upon a requisition shall be dissolved. If otherwise convened it shall stand adjourned for seven days at the same time and place or to such other day and at such other time and place as the Board may determine and no notice of adjournment need be given. At that meeting, those shareholders present in person or by proxy will form a quorum whatever their number and the number of shares held by them. A majority of not less than 75% of the total number of votes cast is required to pass the special resolutions. To appoint more than one proxy you may photocopy the form of proxy. Please indicate the proxy holders name and number of shares in relation to which they are authorised to act as your proxy (which, in aggregate, should not exceed the number of shares held by you). Please also indicate if the proxy instruction is one of multiple instructions being given. All forms must be signed and should be returned together in the same envelope.
3 4
5 6
51
Key parties
Directors Donald Adamson Robert Rickman William Spitz Martin Richardson Colin McGrady Registrar, Paying Agent and Transfer Agent Capita Registrars (Jersey) Limited PO Box 378 Jersey JE4 0FF Nominated Adviser for AIM PricewaterhouseCoopers LLP Plumtree Court London EC4A 4HT United Kingdom Investment Manager CP Cogent Asset Management LP 2101 Cedar Springs Road Suite 1200 Dallas Texas 75201 United States Auditors KPMG Channel Islands Limited 5 St Andrews Place Charing Cross St Helier Jersey JE4 8WQ Property Valuers Day Forest Management & Appraisal Inc. PO Drawer 1169 4711 North Wheeler/Highway 96 North Jasper Texas 75951 United States James W. Sewall Company 136 Centre Street PO Box 433 Old Town ME 04468 United States Holtz Consultoria Ltda Avenida Repblica Argentina 452 Cj. 1506 gua Verde CEP: 80240-210 Curitiba Brazil
URS Australia Pty Ltd Level 6, 1 Southbank Boulevard Southbank Victoria 3006 Australia Steven Broun and Associates Suite 25, Level 1 Hannas Arcade, Beardy Street PO Box 445 Armidale NSW 2350 Australia Sandro Al-Alam Elias Safras & Cifras Rua Santos Dumont 621 Pelotas RS CEP 96020-380 Brazil Registered Office of the Company 5 Castle Street St Helier Jersey JE2 3RT Sponsor to CISX Listing and Legal Adviser Carey Olsen Corporate Finance Limited 44 Esplanade St Helier Jersey JE1 0BD Corporate Broker Matrix Corporate Capital LLP One Vine Street London W1J 0AH United Kingdom Administrator and Company Secretary Investec Trust (Jersey) Limited 5 Castle Street St Helier Jersey JE2 3RT Sub Administrator Praxis Property Fund Services Limited PO Box 296 Sarnia House St Peter Port Guernsey GY1 4NA
52
5 Castle Street St Helier Jersey JE2 3RT Telephone +44 (0)1534 512512

Cambium Annual Report 2009

Загружено:

Сведения о документе

Исходное описание:

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Cambium Annual Report 2009

Загружено:

Авторское право:

Доступные форматы

Cambium Global Timberland Limited

Chairmans statement summary/

Donald Adamson Chairman 28 July 2009

Investment managers report

CP COGENT ASSET MANAGEMENT LP Investment Manager 28 July 2009

Species plantable acres/

% by age class plantable acres/

1 Unplanted 38% 2 Emerging 25% 3 Established 16% 4 Mature 21%

50,000 50,000 50,000 50,000

0.02 0.02 0.02 0.02

Donald Adamson Martin Richardson Robert Rickman William Spitz

40,000 25,000 25,000 25,000 115,000

49,753 31,096 31,096 31,096 143,041

Directors report continued

Directors report continued

Donald Adamson 28 July 2009

Martin Richardson 28 July 2009

Independent auditors report to the members

Consolidated income statement

For the year ended 30 April 2009

For the period from 19 January 2007 to 30 April 2008

872,880 (542,453) 330,427

2,735,810 (2,158,873) (1,668,500) (11,320) (3,838,693)

Consolidated balance sheet

Donald Adamson Director

Martin Richardson Director

Consolidated statement of changes in equity

495,708 69,942 (17,650)

104,350,000 (102,350,000) 2,000,000

495,708 495,708 16,792,421

52,292 52,292 (4,598) 17,650

1,819,645 104,350,000 106,169,645 16,792,421 (4,598) 17,650

(17,848,586) (3,130,500) (19,707,441)

(1,043,113) (3,130,500) 101,996,032

Consolidated cash flow statement

For the year ended 30 April 2009

For the period from 19 January 2007 to 30 April 2008

Company income statement

For the year ended 30 April 2009

For the period from 19 January 2007 to 30 April 2008

(2,580,212) (3,391,375) (5,971,587) (30,035) 5,791,060 5,761,025 31,137 (179,425)

25,150 1,787,251 1,812,401 (3,164,409) (3,146,165)

Company balance sheet

Company statement of changes in equity

104,350,000 (102,350,000) 2,000,000

(17,650) (17,650) 17,650

(179,425) (179,425) (3,146,165)

(197,075) 104,350,000 104,152,925 (3,146,165) 17,650

(3,146,165) (3,130,500) (6,456,090)

(3,128,515) (3,130,500) 97,893,910

Company cash flow statement

For the year ended 30 April 2009

For the period from 19 January 2007 to 30 April 2008

Notes to the financial statements

Revised and amended standards

IFRS 1: IFRS 2: IFRS 3: IFRS 5: IAS 1: IAS 1: IAS 1: IAS 16:

Notes to the financial statements continued

2.0383 3.2381 324.6552 2.6168 1.4790

2.1747 3.3199 386.0726 2.6574 1.6769

2.1110 N/A 322.0830 N/A 1.9714

2.2876 N/A 347.1827 N/A 2.0107

Notes to the financial statements continued

Notes to the financial statements continued